Thunderbird Resorts Inc.: Philippine Operations Sold for Net Price in Excess of Group Market Cap
(Thomson Reuters ONE) -
Thunderbird Resorts Inc. /
Thunderbird Resorts Inc.: Philippine Operations Sold for Net Price in Excess of
Group Market Cap
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The issuer is solely responsible for the content of this announcement.
PANAMA, REPUBLIC OF PANAMA--(Marketwired - August 11, 2013) - Thunderbird
Resorts Inc. ("Thunderbird" or "Group") (FRANKFURT:4TR)(EURONEXT:TBIRD) is
pleased to announce that it has sold its entire economic interest and management
rights in its Philippines and related British Virgin Islands operations to
Magnum Leisure Holdings Inc. and its related entities, affiliates of Solar
Entertainment Corporation (collectively "Magnum"), for a post-tax, net price of
approximately $26.5 million. The Group's reported consolidated debt will also be
reduced by at least $9.2 million.
Thunderbird has also executed a 36-month non-compete agreement with Magnum in
the Philippines. Of the net price: a) $5 million will be paid via a promissory
note that will amortize over approximately 18 months at a 7% interest rate and
is backed by a letter of credit issued by a major banking institution; and b) $5
million will be subject to hold backs by Magnum for up to 30 months to cover
potential contingent liabilities.
The Group had announced in August 2011 that the Group and Solar Entertainment
Corporation ("Solar") would enter into a joint venture to co-own the Philippines
operations. The Group's decision to sell rather than to jointly own the
Philippine operations was based on further strategic analysis and determined as
the best decision to building shareholder value.
While the Philippines represented approximately 45% of the Group's global
property EBITDA, the net price plus debt reduction is equal to approximately
$1.39 per share or 155% of the Group's 30-day average price of $0.90 per share.
Moreover, Thunderbird continues to own approximately the following in Latin
America[1]:
Operations: Gaming, hotel, food and beverage and real estate businesses
in Peru (100% Group owned), Costa Rica (50% to 56.2% Group
owned) and Nicaragua (55.9% Group owned); and operated by
approximately 1,700 employees.
Revenues: $58.4 million annualized based on June 30, 2013 preliminary
results, of which 85% is from gaming and 15% from non-
gaming businesses.
Property EBITDA: $10.8 million annualized based on June 30, 2013 preliminary
results.
Corporate Expense: $4.8 million annualized based on June 30, 2013 preliminary
results.
Real Estate: $62 million in market value based on appraisals performed
for virtually all properties within the last 24 months. On
our balance sheet, we book real estate based on depreciated
book value, which was $46.9 million based on June 30, 2013
preliminary results.
Debt: $57.2 million from continuing and discontinued operations
based on June 30, 2013 preliminary results and net of that
Philippines-related debt reduced from Group books as part
of the sale to Solar. The Group will likely pay down
additional debt in the near future.
Gaming Positions: 2,885 slot machines and 616 table positions divided among
19 operations with an annual visitor count exceeding 2.5
million per year.
Hotel Rooms: 87 rooms owned between the 66-room Fiesta Hotel in a prime
location in Miraflores, Lima, Peru, the 20-room Fiesta
Hotel in Perez Zeledon, Costa Rica, and 398 rooms in 3
hotels managed by the Group in Lima, Peru.
With the sale of the Philippines, the Group now has fresh capital to further
reduce debt and to invest in building cash flows in Peru, Costa Rica and
Nicaragua. We will continue to focus on gaming as our core business.
We thank the many dedicated employees and associates who helped Thunderbird to
grow in the Philippines. We wish them and Magnum great success. Finally, our
special thanks to Angel Sueiro who has resigned as an officer of Thunderbird
Resorts Inc. and its affiliates. By remaining with the Philippines operations
under new ownership, he facilitated the transaction. Angel Sueiro dedicated many
years of service to Thunderbird and we wish him and his family well.
ABOUT THE COMPANY
We are an international provider of branded casino and hospitality services,
focused on markets in Latin America. Our mission is to "create extraordinary
experiences for our guests." Additional information about the Group is available
at www.thunderbirdresorts.com.
[1] Effective January 1, 2013, IFRS 11 changed the way that joint ventures are
accounted for whereby proportional consolidation is no longer allowed and equity
accounting should be applied to joint ventures. Until further notice and for the
convenience of the reader and for illustrative purposes, the Group has elected
to represent the Costa Rican joint venture proportionally when discussing
financial performance in this release. Such presentation varies from the way
that the Group will account for the Costa Rican joint venture in our Half-year
Financial Statements and Annual Audited Financial Statements.
Cautionary Notice: This release contains certain forward-looking statements
within the meaning of the securities laws and regulations of various
international, federal, and state jurisdictions. All statements, other than
statements of historical fact, included herein, including without limitation,
statements regarding potential revenue and future plans and objectives of the
Group are forward-looking statements that involve risk and uncertainties. There
can be no assurances that such statements will prove to be accurate and actual
results could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ materially from the
Group's forward-looking statements include competitive pressures, unfavorable
changes in regulatory structures, and general risks associated with business,
all of which are disclosed under the heading "Risk Factors" and elsewhere in the
Group's documents filed from time-to-time with the AFM and other regulatory
authorities.
Contact Information
Thunderbird Resorts Inc.
Peter LeSar
Chief Financial Officer
(507) 223-1234
plesar(at)thunderbirdresorts.com
www.thunderbirdresorts.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Thunderbird Resorts Inc. via Thomson Reuters ONE
[HUG#1722374]
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Datum: 12.08.2013 - 06:23 Uhr
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