Isle of Capri Casinos, Inc. announced today, pursuant to the terms of its previously announced cash tender offer (the "Tender Offer") to purchase up to an aggregate principal amount of $140 million of its 7% Senior Subordinated Notes due 2014 (the "Notes"), that holders had validly tendered and not withdrawn $322,786,000 aggregate principal amount of the Notes outstanding, or approximately 64.56%, as of 5:00 p.m. New York City Time on January 27, 2009, the expiration of the Early Tender Time and Withdrawal Deadline. Pursuant to the terms of the Tender Offer, any tender, whether made before or after the Withdrawal Deadline, may no longer be withdrawn.

 

The terms of the Tender Offer, including all capitalized terms not defined herein, are contained in the Offer to Purchase, dated January 13, 2009, and in the related Letter of Transmittal.

 

Holders that tendered Notes prior to the expiration of the Early Tender Time that were not validly withdrawn and are accepted in the Tender Offer will receive $580 per $1,000 principal amount tendered and accepted, which includes a $30 Early Tender Premium.

 

Holders whose Notes are accepted for payment but who validly tendered such Notes after the Early Tender Time, and at or prior to the Expiration Time, will only be eligible to receive the Tender Offer Consideration of $550 per $1,000 principal amount of Notes accepted for payment pursuant to the Tender Offer. The Tender Offer will expire at 12:01 a.m., New York City time, on February 11, 2009, unless extended or earlier terminated.

 

Isle's obligation to accept and pay for Notes tendered in the Tender Offer is subject to the satisfaction or waiver of certain conditions. The amount of Notes tendered and not validly withdrawn prior to the Early Tender Time exceeds the maximum of $140 million aggregate principal amount being sought and will be accepted on a pro rata basis with all Notes tendered prior to the Expiration Time. As a result, the pro ration factor cannot be determined prior to the Expiration Time.

 

This press release is not an offer to purchase or a solicitation of an offer to sell any securities, which is being made only pursuant to the Offer to Purchase and the related Letter of Transmittal. Isle has retained Credit Suisse Securities (USA) LLC to serve as Dealer Manager and D. F. King & Co., Inc. to serve as the Tender Agent and the Information Agent for the tender offer. Requests for documents may be directed to D. F. King & Co., Inc. at (800) 431-9643 or, if a Bank or Broker, by calling (212) 269-5550 collect or in writing at 48 Wall Street, 22nd Floor, New York, New York 10005. Questions regarding the tender offer may be directed to Credit Suisse Securities (USA) LLC.

 

None of Isle, Credit Suisse Securities (USA) LLC, or D. F. King & Co., Inc., makes any recommendation that the holders should tender or refrain from tendering all or any portion of the principal amount of their Notes pursuant to the tender offer. Holders must make their own decision as to whether to tender their Notes.

 

The Offer to Purchase does not constitute an offer to purchase any Notes in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such offer under applicable securities or "blue sky" or other laws. In any jurisdiction where the laws require the tender offer to be made by a licensed broker or dealer, the tender offer will be deemed made on behalf of Isle by Credit Suisse Securities (USA) LLC, or one or more registered brokers or dealers under the laws of such jurisdiction.

 

About Isle of Capri Casinos, Inc.

 

Isle of Capri Casinos, Inc., founded in 1992, is dedicated to providing its customers with an exceptional gaming and entertainment experience at each of its 18 casino properties. Isle owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport, Marquette and Waterloo, Iowa; Boonville, Caruthersville, Kansas City, Missouri; two casinos in Black Hawk, Colorado; and a casino and harness track in Pompano Beach, Florida. Isle's international gaming interests include a casino that it operates in Freeport, Grand Bahama, a casino in Coventry, England, and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England.

 

Forward-Looking Statements

 

This press release may contain forward-looking statements which are subject to change. These forward-looking statements may be significantly impacted, either positively or negatively by various factors, including without limitation, licensing and other regulatory conditions, the economy, financing sources, development and construction activities, costs and delays, weather, permits, competition and business conditions in the gaming industry.

 

The forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements herein.

 

Additional information concerning potential factors that could affect Isle's financial condition and results of operations is included in Isle's filings with the Securities and Exchange Commission, including, but not limited to, the Isle's Annual Report on Form 10-K for the year ended April 27, 2008 and its Quarterly Report on form 10-Q for the quarter ended October 26, 2008.