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EXHIBIT 99.1
SANTA FE GAMING CORPORATION
4336 LOSEE ROAD STE. #9
NORTH LAS VEGAS, NV 89030
FOR IMMEDIATE RELEASE:
Friday, January 5, 2001
SANTA FE GAMING CORPORATION ANNOUNCES TRANSFER OF ASSETS OWNED BY ITS
SUBSIDIARY PIONEER HOTEL INC.
LAS VEGAS, NEV., Santa Fe Gaming Corporation (the Company") (OTCBB:SGMG), a
gaming company headquartered in Las Vegas, announced today that its wholly-owned
subsidiary, Pioneer Hotel Inc. ("PHI"), has completed the transfer of the real,
personal and intangible property used in the operation of the Pioneer Hotel and
Gambling Hall, in Laughlin, Nevada (the "Pioneer") in accordance with Section
351 of the code.
The transfer was completed in a series of transactions, with an aggregate value
of $36.0 million, (collectively, the "Transactions"). In connection with the
Transactions, approximately $35.0 million was used to retire first mortgage
indebtedness due Santa Fe Hotel Inc. ("SFHI"), a subsidiary of the Company. PHI
agreed to lease and license substantially all of the assets transferred for a
period of twenty years under which it will continue to operate the Pioneer. The
Company and SFHI have guaranteed the lease and SFHI has secured its guarantee
obligation.
Santa Fe Gaming Corporation operates the Pioneer Hotel and Gambling Hall in
Laughlin, Nevada and owns property on Las Vegas Boulevard for possible future
development.
CONTACT; Thomas K. Land
Chief Financial Officer
Santa Fe Gaming Corporation
702-658-4300
702-658-4331 (fax)
www.santafegaming.com
