Florida Gaming to repay facility via proceeds from sale of subsidiary

By Ashley Montgomery

Kansas City, Kan., Nov. 26 - Florida Gaming Corp. plans to use the proceeds from the sale of subsidiary Florida Gaming Centers, Inc. to repay credit facility debt, according to a filing with the Securities and Exchange Commission.

The subsidiary will be sold to Silvermark LLC for $115 million plus the assumption of certain liabilities of Florida Gaming Centers associated with two mortgages held by Miami-Dade County.

Proceeds from the sale will also be used to repay other debt and $7.5 million of the purchase price will be held in escrow for up to three years to indemnify Silvermark LLC against obligations of the company after the closing.

The sale is expected to close in the first quarter of fiscal 2013.

Based in Miami, Florida Gaming owns and operates gaming facilities.

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