Wells Fargo Bank has agreed to lend Colorado Springs-based Century Casinos Inc. $35 million to build a casino-hotel complex in fast-growing Central City.
The company, which owns Womack's Casino in Cripple Creek, plans to open the complex next summer to benefit from a four-lane highway that opened in November and gives the town west of Denver a direct route to Interstate 70.
"With the opening of the Central City parkway, Central City's casino revenues have increased by 50 percent for the first six months of 2005, the highest growth rate of any Colorado casino location," said Peter Hoetzinger, Century's president and co-chief executive.
The company paid $3.5 million in January for a 65 percent interest in the partnership that will own and operate the Central City complex.
Century already has started remodeling the former Miner's Pick, Toll Gate and Gold Rose casinos, which all closed between 1992 and 1999, into a gaming hall that will include 625 slot machines, six card tables, 35 hotel rooms and a 500-space parking garage.
Wells will organize a syndicate of institutional lenders and investors to make the loan, which includes $32.5 million in construction financing that will be converted to a five-year loan when the casino opens and a $2.5 million, sixyear revolving line of credit.
The Wells loan will be paired with a $4.5 million, two-year loan from an in- vestor to build the complex, buy gaming equipment and refinance another loan. Century already owes $16.5 million to Wells under a $21 million line of credit that matures in two years.
Century also is negotiating financing for a $24 million casino it is building in Edmonton, Alberta, that also is scheduled to open next summer. Century owns 56.4 percent of the planned Celebrations Casino, which will be next to an existing 40-room hotel and dinner theater.
The two construction projects contributed to a 26.1 percent decline in Century's earnings during the first half of the year, to $1.52 million, or 11 cents a share.
Century shares, which trade on the Nasdaq Stock Market under the symbol CNTY, rose 5 cents Wednesday, to $6.95.
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