Morongo Indians Plan $20.1M Buyout

BANNING, CA-The Morongo Band of Mission Indians could become owners of a Las Vegas-based gaming company, Full House Resorts, under terms of a merger agreement between the two.

The Indian tribe and Full House say they have entered into a definitive merger agreement under which a subsidiary of the Morongo tribe will pay shareholders of Full House Resorts stock $1.30 per share for common stock and $6.15 per share of preferred stock for each holder of Full House’s Series 1992-1 Preferred Stock. If consummated as proposed, the merger would value Full House Resorts at $20.1 million and would include the assumption of $2.4 million of debt by the Morongo Band.

The Morongo tribe says it would fund the acquisition from cash reserves and existing credit lines. The transaction, which is expected to close in the fourth quarter of 2003, is subject to shareholder approval by Full House Resorts, approval by the general membership of the Morongo tribe, the gaming commission and any other necessary regulatory approval and other customary closing conditions.

Maurice Lyons, Morongo tribal chairman, says the tribe has sought ways to continue to diversify its economic ventures, which he says the Full House investment would accomplish. The acquisition of Full House would “allow us to bring our gaming management expertise and experience to bear in new markets,” Lyons says.

The Morongo Band of Mission Indians began gaming in 1983, and since then its then modest bingo hall has grown into the flourishing Casino Morongo, one of the largest and oldest tribal casinos in the country. The Morongo tribe broke ground in May of this year on a new $250 million casino resort hotel on its reservation. The 660,000-sf project will rise along the Interstate 10 Freeway between Los Angeles and Palm Springs.

Full House Resorts Inc. develops and manages gaming facilities, including Midway Slots and Simulcast at the Delaware State Fairgrounds in Harrington, DE. It is also involved in the development of a tribal project in Battle Creek, MI.