CHICAGO, Aug. 15, 2007 (PRIME NEWSWIRE) -- KL Holding Company, N.V., a closely held international resort and casino development company, has sold $65 million in senior secured notes to institutional investors. The proceeds will be used to acquire, rebrand and renovate the former La Cabana Villas and former Royal Cabana Casino in Aruba. Details of the transaction were not disclosed.
La Cabana includes a 362-room timeshare and resort hotel consisting of two five-story buildings and two four-story buildings, a 48,000 square foot permanent casino, a restaurant (currently operating as a temporary casino) and recreational amenities. The Company previously won an auction in Aruba to purchase the assets for $50.3 million.
The Company said its new direction will be "Caribbean contemporary with American comforts." In addition to completely renovating and upgrading each condominium, the Company will redesign and renovate the permanent casino into a state-of-the-art gaming, showroom and restaurant facility. When completed the casino will be one of the largest in the Caribbean. In addition, the Company will be selling more than 15,000 timeshare interests.
Safe Harbor Statement: The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information made on the Company's behalf. All statements, other than statements of historical facts which address the Company's expectations of sources of capital or which express the Company's expectation for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements. Such statements made by the Company are based on knowledge of the environment in which it operates, but because of the factors previously listed, as well as other factors beyond the control of the Company, actual results may differ materially from the expectations expressed in any forward-looking statements.