Barden to Sold Fitzgeralds Casino for Majestic Star Casino Financing

Known casino businessman Don Barden previously said that he intends for the Majestic Star Casino, which is located in Pittsburgh to be the main casino of his gaming empire and he is prepared to show that he means his word. On May 6th, 2008, the Bond ratings agency Standard and Poor’s upgraded its rating for the Majestic Star casino, commenting that Barden plans to put his Fitzgeralds Casino and Hotel facility located in downtown Las Vegas. Standard and Poor analyst Ben Bubeck commented that Barden would place $35 million pesos of the sales on the opening of the slots parlor in Pittsburgh.

Ben Bubeck said that the Fitzgeralds Casino sale would take place before the opening of the Majestic Star casino on May 2009. Barden also owns a pair of Majestic Star casino boats in Gary, Indiana and Fitzgeralds casino in Tupelo, Mississippi and Black Hawk, Colorado. Barden and the officials of PITG Gaming cannot be reached for a comment on the issue. Company spokesperson Bob Oltmanns also refused to comment on the issue.

The cash from the sale of Fitzgeralds Casino would ease concerns about the money needed to construct the casino facility in Pittsburgh. The proceeds will be put into a reserve account along with other money that could add up to $70 million. Barden’s PITG is hoping for three loans worth $800 million for the Majestic Star Casino project. The expenses of the casino have grown to six hundred fifty million from the earlier cost of $450 million.

Factoring in insurance, financing and lawyer costs and it could grow to $770 million. Standard and Poor’s improved the rating for Barden’s PITG to B from B-placing its outlook for the casino project at negative. The organization improved the rating for the $390 million and $260 million loan that PITG is hoping to get from Credit Suisse.

Barden said that the finances for the project need to be in place on May 19th, 2008. PITG plans to get an additional $150 million loan for the project.