Group to pay penalty to extend closing date for jai-alai deal
The investor group that has agreed to buy Boyd's Gaming Corp.'s Dania Jai-Alai will pay a $2 million penalty to extend the deal's closing date for two months.
Under the terms of the contract, Dania Entertainment was supposed to complete the purchase on Sept. 26, but will now have until Nov. 28. No reason was given for the delay.
As part of the terms, Dania will pay Boyd $2 million, but only $1 million will be applied to the $80 million purchase price. When the deal was announced in May, Dania had put $5 million down, which was deemed nonrefundable but can also count as a credit against the price.
In an unrelated matter, Boyd filed the prospectus for an exchange of $500 million in senior notes carrying a 9.125 percent and due in 2018. The terms of the two sets of notes are largely identical, but the new notes will be registered with the Securities and Exchange Commission. This will eliminated certain transfer restrictions and other technicalities that came with the old notes.
