Lady Luck shareholders approve merger with Isle of Capri

Matt Moore

Thursday, Feb. 10, 2000 | 8:41 a.m.

JACKSON, Miss. - Isle of Capri Casinos Inc. moved one step closer to completing its $400 million merger with another casino company.

Shareholders of Lady Luck Gaming Corp. gave their approval to the proposed merger with Biloxi-based Isle of Capri.

The vote, taken Tuesday by shareholders in Las Vegas, was overwhelmingly in favor of the merger, which was announced in October, said Peggy Bruhns, a spokeswoman for Lady Luck. She said 84 percent of the shareholders cast their vote in favor of the merger.

Under the terms of the merger agreement, Isle of Capri Casinos will pay shareholders of Lady Luck $12 per share, or a total of $59 million, and assume all of Lady Luck's outstanding debt of $177 million.

The merger agreement also provides for the redemption of $22 million in outstanding preferred Lady Luck stock.

The merger is expected to close by the end of March, provided Isle can get the financing needed for the deal.

Other regulatory approvals, including one from the state Gaming Commission, have already been granted.

Las Vegas-based Lady Luck Gaming owns two barge casinos in Lula - the Lady Luck Rhythm & Blues Casino Hotel and the Lady Luck Country Casino - and the Lady Luck Casino Hotel in Natchez. Combined, the company operates more than 2,000 slots and 70 gaming tables. It employs more than 2,500 workers.

Biloxi-based Isle of Capri owns and operates seven riverboat, dockside and land-based casinos, including locations in Tunica, Biloxi and Vicksburg, two locations in Louisiana, and one in Colorado.

The company also operates a harness racing track in Pompano Beach, Fla., and the Enchanted Capri cruise ship that sails out of New Orleans.

The company employs more than 6,000 workers.

The family of Isle CEO Bernard Goldstein owns approximately 34 percent of the company.