Isle of Capri enters option agreement to sell riverboat

LAKE CHARLES, LA (KPLC) - Isle of Capri Casinos announced Tuesday that they have entered into an option agreement with Paradise Casino, LLC, giving them the right to purchase one of the two gaming subsidiaries that Isle of Capri operates in Lake Charles.

It was reported on Monday that Paradise, based in Lafayette, was interested in obtaining one of the licenses owned by Isle of Capri so they could transfer it to a location in Bossier City.

Watch later editions of 7News and check for more details as they become available.

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If you would like to read the press release issued by Isle of Capri, it is posted below.

The following is a news release from Isle of Capri Casinos, Inc.:

ST. LOUIS – June 14, 2011 – Isle of Capri Casinos, Inc. (the "Company") announced today that it has entered into an Option Agreement (the "Agreement") with Paradise Casino, LLC ("Paradise Casino") granting Paradise Casino the right to buy one of the Company's two gaming subsidiaries in Lake Charles, Louisiana.  If the option is exercised and the transaction closes, Paradise Casino will acquire an entity that is licensed and owns the Crown gaming vessel, as well as the furniture, fixtures and equipment located on that vessel.  The Agreement provides that the option must be exercised, if at all, no later than November 30, 2011.  In the event the option is exercised, following the closing of the transaction, the Company plans to consolidate its operations in Lake Charles onto the adjacent Grand Palais gaming vessel, which is the larger of the two vessels.

The Agreement provides that Paradise Casino will immediately begin the process of obtaining regulatory and other approvals including a successful referendum to relocate the facility to Bossier City, Louisiana. The financial terms of the Agreement and the purchase price have not been disclosed.

Virginia McDowell, the Company's president and chief executive officer commented, "We have previously indicated our desire to explore options for our second gaming facility currently located in Lake Charles.  We believe that the pending transaction for one of the two vessels located at our gaming operation in Lake Charles will provide a solid opportunity for our company."

McDowell continued, "For our team and customers, we will continue to operate our business as usual and are confident that, if the option is exercised and the transaction is completed, we will be able to create an even better work environment and more successful business through this consolidation."

All terms and the purchase of the property are subject to customary closing conditions and appropriate regulatory approvals. There can be no certainty that Paradise Casino will choose to exercise its option or with respect to the ultimate conclusion of the Agreement.