Reno casino operator buying Gold Ranch

Wednesday, Jan. 2, 2002 | 9:08 a.m.

RENO -- Sands Regent today said it agreed to purchase the Gold Ranch Casino and RV Resort in Northern Nevada for cash, Sands Regent common stock and new and assumed debt.

Sands Regent said the final price will be based on the property's trailing 12-months earnings before interest, taxes, depreciation, amortization and rent preceding closing at a capitalization rate of about 20 percent.

The Gold Ranch Casino and RV Resort site includes an 8,000-square-foot casino with about 300 slot machines, a video arcade, a coffee shop, a fast food restaurant, two bars and a convenience store. The site also includes a gas station, a California lottery outlet and a 105-space RV park, opened in July 2001.

Sands Regent said the Gold Ranch operation, 12 miles west of Reno, will complement its downtown Reno gambling operation and will allow for cross-marketing programs that will benefit both sites.

Sands Regent expects the transaction to close in the spring, subject to approval by Nevada gaming authorities and other contingencies.

Visible from Interstate 80, Gold Ranch is the first casino that travelers encounter on Interstate 80 when entering Nevada from California, and the last when leaving, Sands Regent said.

"The mix of amenities at Gold Ranch will enhance our portfolio of holdings and be beneficial in attracting more customers, both local residents and Interstate 80 vehicular travelers," Ferenc Szony, chief executive of the Sands Regent, said.