Boyd Buy

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Boyd Gaming Corporation, owner of Sam’s Town in Tunica, Mississippi, last month announced it will buy the IP Casino Resort Spa in Biloxi from Imperial Palace of Mississippi LLC and Key Largo Holdings LLC for 8 million. The purchase will be funded through Boyd Gaming’s .5 billion revolving credit line. After the deal closes, expected before the end of the year, Boyd Gaming will invest another million to renovate the property.

Totally remodeled in 2005, the IP overlooks the scenic Back Bay area and features 1,100 hotel rooms and suites, a 70,000-square-foot casino with 1,900 slot machines and 62 table games, plus 73,000 square feet of convention space, a spa and salon, a 1,400-seat theater, eight restaurants and six lounges and bars. The property has received numerous AAA Four Diamond awards.

Last year, the IP generated about $41 million in EBITDA; Mississippi’s 30 casinos raised $2.39 billion in gross gaming revenues and hosted 31.6 million visitors.

Keith Smith, president and chief executive officer of Boyd Gaming, said, “This acquisition is an exciting opportunity for our company. It is an excellent fit for our existing business and provides further geographic diversification by giving us a presence in a leading regional destination market.”