Westlake Advises on Sale of Minority Interest in MotorCity Casino
April 25, 2005Westlake Securities is pleased to announce the sale of a Minority Interest in the holding company for MotorCity Casino, located in Detroit, Michigan. Westlake's client in the transaction, Atwater Entertainment Associates, LLC, realized $106.4 million in the sale. AEA's minority interest was purchased by Ilitch Holdings, which also bought the remaining equity in the holding company including the controlling interest owned by Mandalay Bay Group prior to its merger with MGM Mirage Resorts. Michael McAllister and Alex Klingelberger advised on the transaction for Westlake.
"Through the course of the transaction, I felt the AEA received the highest caliber of advice, negotiating ability, and understanding of the financial, political, and legal dynamics of our position. The advisory expertise of their firm resulted in a sale of AEA's interest in the MotorCity Casino for $106.4 million, representing over 20 times our original investment in the venture." Vivian Carpenter, President of Atwater Entertainment Associates, LLC
Westlake Securities was brought in by a leading boutique advisory firm in the gaming industry, Asher Financial, to co-advise Atwater Entertainment Associates (AEA). AEA was an indirect owner of an 11.5% in the largest casino in Detroit, MotorCity Casino. Pursuant to the $8.9 billion merger of Mandalay Resort Group and MGM Mirage Resorts, announced in June 2004, state and federal regulators required that the merged company sell either the Motor City Casino or the MGM Grand Detroit.
Westlake examined both the alternative of buying out the other MotorCity owners, as well as selling the AEA ownership interests. After advising AEA in its discussions with several potential buyers, Westlake and Asher negotiated on behalf of and advised AEA's members to accept a sale of their interest to Illitch Holdings, another minority interest shareholder of MotorCity Casino.
Based in Austin, Texas, Westlake Securities provides equity and debt capital raising services for private and small cap public companies, with a focus on emerging growth companies in the technology, communications, healthcare/life sciences, services, manufacturing, transportation and retail sectors. Westlake also offers buy-side and sell-side merger and acquisition advisory services for companies and control investors seeking to execute mergers and acquisitions. Its focus is primarily on transaction values between $10 million and $100 million. Westlake is a member of NASD and of Securities Investor Protection Corporation. More information about Westlake Securities may be found at www.westlakesecurities.com or the contact information below.
