Las Vegas-based Full House Resorts Inc. Friday completed its $30 million purchase of Bronco Billy's Casino and Hotel, the second-largest group of casinos in Cripple Creek with roots dating to the legalization of gaming in Colorado nearly 25 years ago.
Full House said in a news release that it retained the casino's management team and all 330 employees after acquiring Bronco Billy's from Pioneer Group Inc. Full House had agreed in September to buy Bronco Billy's, which includes three casinos with 828 slot and video poker machines, poker, blackjack, craps and roulette tables; a 24-room hotel, steakhouse, four casual dining restaurants, an outdoor amphitheater and 2.3 acres of additional parking. The deal also includes ownership rights to the rest of the city block where Bronco Billy's is located along with adjoining land and structures.
"Bronco Billy's is well-run and well-maintained, and a consistent leader within its stable market. We believe that both the market and Bronco Billy's offer growth opportunities," Full House CEO Daniel Lee said in the release. "In additional to increasing the diversity and scope of Full House, we acquired Bronco Billy's at an attractive EBITDA (earnings before interest, taxes, depreciation and amortization) multiple and price."
Full House completed the Bronco Billy's deal at the same time it refinanced and increased its borrowings to $100 million, including a $45 million first-lien loan with Capital One Bank that matures in three years, but can be extended, and a $55 million second-lien loan with ABC Funding LLC that matures six months after the Capital One loan but no later than May 2022.
Bronco Billy's is one of two surviving casinos in Cripple Creek that opened when gaming was legalized in Black Hawk, Central City and Cripple Creek on Oct. 1, 1991. With the acquisition of the three-casino complex, Full House ranks second to Richard Holland's Triple Crown Casinos as Cripple Creek's largest casino operator in Cripple Creek.
Full House now owns casinos in Fallon, Nev.; Rising Sun, Ind., and Bay St. Louis, Miss., and operates another on the shores of Lake Tahoe in Nevada. The company last year cut its losses to $1.32 million, or 7 cents a share, from $20.8 million, or $1.10 a share, from 2014 as revenue rose 2.6 percent to $124.6 million.