Las Vegas-based casino operator Full House, which announced plans last month to increase the expansion size of its Colorado casino, said Tuesday it would raise $300 million in new debt to help the costs.
In a filing with the Securities and Exchange Commission, Full House said it would use the funds to redeem $106.8 million of debt due in 2024 and to fund the proposed $180 million expansion and redevelopment of the Bronco Billy’s Casino and Hotel in Cripple Creek.
Any leftover proceeds would go toward fees and expenses related to the offer and for general corporate purposes.
The company did not comment beyond the filing.
Full House had total debt at the end of September of $107.1 million, in addition to $5.6 million in outstanding secured loans obtained under the CARES Act last April.
Full House said last month it would increase the size of Bronco Billy’s expansion by 67% by adding a 300-room hotel and increasing the budget. Other planned amenities for the expansion – a new parking garage, meeting and entertainment space, an outdoor rooftop pool, spa, and a fine-dining restaurant – remain largely unchanged.
Colorado’s newly expanded gaming offerings propelled the move.
Last November, Colorado voters approved Amendment 77, which removed the state’s $100 wagering limit on a single bet and allows casinos to begin offering several previously forbidden games, such as baccarat, keno, and the big six wheel.
Analysts said the changes could be worth millions of dollars in revenue to casino operators in Central City, Black Hawk, and Cripple Creek.
Full House said it would complete the project in one phase by the end of 2022.
Full House operates five casinos in four states.
Last month, Full House said the Cripple Creek Historic Preservation Commission and Cripple Creek City Council had approved the plans and a final approval required a second reading by the City Council, which is expected to take place on Wednesday.
During Full House’s third-quarter conference call in November after the vote, CEO Dan Lee said the expanded gaming opportunities was “a plus” for the Cripple Creek property.
“Is it a huge plus? I don’t know, but it’s certainly a plus,” Lee said. “Bronco Billy’s is a pretty simple casino today, but we do look and have talked a lot and have acquired land and have plans to eventually build a high-end hotel in Cripple Creek and fix up Bronco Billy’s. And obviously, this is a very big plus for that.”
Shares of Full House, traded on the Nasdaq, closed Tuesday at $6.05, down 35 cents or 5.47%.
(Disclosure: Ken Adams, CDC Gaming’ senior analyst, is a member of the Full House board of directors)
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
