Tropicana agrees to sell Casino Aztar for $245 million

By Caroline Salls

Pittsburgh, March 31 - Tropicana Entertainment, LLC, an indirect subsidiary of Tropicana Casinos and Resorts, has entered into a definitive agreement to sell its Casino Aztar riverboat gaming and hotel property in Evansville, Ind., to Eldorado Resorts, LLC for up to $245 million, according to a company news release.

The purchase price includes $190 million in cash, a $30 million note and $25 million in potential earnings incentives linked to the operating performance of the property.

Tropicana said it will use the sale proceeds to reduce debt.

The sale is subject to customary conditions, including financing and approval by the Indiana Gaming Commission (IGC), which must license Eldorado before the transaction can close.

At any time before Eldorado receives a financing commitment, Tropicana can accept a superior proposal to acquire Casino Aztar, subject to the payment of a break-up fee, the release said.

In addition, Tropicana has agreed to have an IGC-appointed trustee act as manager of Casino Aztar until any pending sale is completed, and former Harrah's executive Tom Dingman was appointed as trustee by the IGC.

Dingman will manage the day-to-day operations of the casino, subject to Tropicana's approval of significant decisions, including entering into material agreements, incurring debt and settling lawsuits.

The trustee will also be required to consult with Tropicana before setting an annual budget, making executive compensation decisions and settling administrative actions.

Dingman's appointment is effective immediately.

Tropicana is a Fort Mitchell, Ky.-based gaming entertainment provider.

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