MINNEAPOLIS, Jul 12, 2010 (BUSINESS WIRE) -- Lakes Entertainment, Inc. (NASDAQ: LACO) announced today that UBS
Financial Services, Inc. ("UBS") had purchased Lakes
Entertainment, Inc.'s ("Lakes") remaining auction rate securities
("ARS") at par value. As previously announced, on November 8,
2008, Lakes entered into an auction rate securities rights agreement ("Agreement")
with UBS which granted Lakes the right to sell its ARS at par value to
UBS at any time during the period of June 30, 2010 through July 2, 2012.
During the second quarter of 2010, UBS purchased Lakes' remaining ARS at
their par value of $21.9 million resulting in no gain or loss to Lakes.
A portion of the proceeds were used to repay the remaining balance of
$14.7 million on Lakes' related line of credit with UBS, which line was
subsequently closed upon repayment. These transactions resulted in net
additional liquidity of $7.2 million to Lakes, and Lakes has no
remaining ARS investments.
About Lakes Entertainment
Lakes Entertainment, Inc. currently has development and management or
financing agreements with three separate Tribes for casino operations in
Michigan and California, for a total of three separate casino sites.
Lakes is currently managing the Four Winds Casino Resort for the Pokagon
Band of Potawatomi Indians and the Red Hawk Casino for the Shingle
Springs Band of Miwok Indians. Lakes is also involved in other business
activities, including the licensing of table games to Tribal and
non-Tribal casinos.
The Private Securities Litigation Reform Act of 1995 provides a safe
harbor for forward-looking statements. Certain information included in
this press release (as well as information included in oral statements
or other written statements made or to be made by Lakes Entertainment,
Inc.) contains statements that are forward-looking, such as statements
relating to plans for future expansion and other business development
activities as well as other capital spending, financing sources and the
effects of regulation (including gaming and tax regulation) and
competition. Such forward-looking information involves important risks
and uncertainties that could significantly affect anticipated results in
the future and, accordingly, such results may differ from those
expressed in any forward-looking statements made by or on behalf of the
company. These risks and uncertainties include, but are not limited to,
need for potential future financing to meet Lakes' development needs;
those relating to the inability to complete or possible delays in
completion of Lakes' casino projects, including various regulatory
approvals and numerous other conditions which must be satisfied before
completion of these projects; possible termination or adverse
modification of management or development contracts; Lakes operates in a
highly competitive industry; possible changes in regulations; reliance
on continued positive relationships with Indian tribes and repayment of
amounts owed to Lakes by Indian tribes; possible need for future
financing to meet Lakes' expansion goals; risks of entry into new
businesses; and reliance on Lakes' management. For more information,
review the company's filings with the Securities and Exchange Commission.
SOURCE: Lakes Entertainment, Inc.
Lakes Entertainment, Inc.
Investor Relations Contact:
Timothy Cope, 952-449-7030
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