Centaur Gaming Acquires Indiana Grand
Toronto, Ontario (February 21, 2013) – Clairvest Group Inc. (TSX:CVG) (“Clairvest”), announced today that an investment partner, Centaur Gaming, has completed the acquisition of Indiana Grand Casino and Indiana Downs Racetrack (“Indiana Grand”). Clairvest invested US$8.4 million in support of the Indiana Grand acquisition. The investment was made in the form of unsecured term loans with stapled warrants.
As part of this transaction, Centaur Gaming completed a financing which resulted in full repayment of its first and second lien loans. Upon completion of the financing Clairvest received US$30.8 million such that on a net basis Clairvest received net proceeds of US$22.4 million. Upon completion of this transaction, Clairvest’s investment in Centaur Gaming is approximately US$14 million, compared to the US$36 million invested as at December 31, 2012.
In addition to Indiana Grand, Centaur Gaming is the owner and operator of Hoosier Park Racing and Casino located 35 miles northeast of Indianapolis in Anderson. The Indiana Grand property is located southeast of the city in Shelbyville, Indiana.
“We expect the combination of the two properties to result in material cost efficiencies and an enhanced gaming service offering to customers. We are now working closely with management at both properties to ensure the successful execution of the combined operational integration plan. The acquisition of Indiana Grand enhances Centaur’s strategic value within the U.S gaming landscape. ” said Michael Wagman, Managing Director of Clairvest.
Clairvest Group Inc. is a private equity management firm which invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753