Successful casino to create long-term economic benefits for employees.
EAST ST. LOUIS, Ill. – Shareholders of Casino Queen, Inc., owner and operator of Casino Queen Hotel & Casino located in East St. Louis, Illinois, have agreed to sell 100% of their equity interests in the company to a newly formed Employee Stock Ownership Plan for approximately $170 million, which includes the assumption and refinancing of approximately $31 million in existing indebtedness.
The privately held ESOP will provide the Company’s approximate 700 employees with an opportunity to participate in the continued success and growth of the property via collective ownership in Casino Queen’s stock. The ESOP will effectively create an enhanced retirement benefits plan tied to the performance of the Property and provide liquidity for employees when they retire or leave the company. The private nature of the ESOP permits management to focus on strategies for the long-term benefit of the Company and creation of wealth for its employees.
Management of the ESOP will be led by co-trustees Jeff Watson, current General Manager of the company, and Bob Barrows, current Chief Financial Officer. Mr. Watson and Mr. Barrows along with the Company’s newly formed Board of Directors will provide daily governance and operations oversight. GreatBanc Trust Company acted as independent ESOP trustee during the acquisition process.
The acquisition, plus related transaction fees and expenses, was funded by the ESOP primarily through a combination of new debt financing instruments totaling $170 million.
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