UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of Report (Date of earliest event reported): June 19, 1997
AMERISTAR CASINOS, INC.
(Exact name of registrant as specified in its charter)
Nevada 0-22494 88-0304799
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation or Number)
organization)
3773 Howard Hughes Parkway
Suite 490 South
Las Vegas, Nevada 89109
(Address of principal executive offices and Zip Code)
(702) 567-7000
(Registrant's telephone number, including area code)
<PAGE>ITEM 5. OTHER EVENTS.
EFFECTIVENESS OF GEM SETTLEMENT AGREEMENT. Ameristar
Casinos, Inc. (the "Company") previously reported that it entered
into a Settlement Agreement (the "Settlement Agreement"), dated
as of May 3, 1997, with the former stockholders (the "Gem
Stockholders") of Gem Gaming, Inc. ("Gem"), which was acquired by
the Company in October 1996 through the merger of Gem into
Ameristar Casino Las Vegas, Inc., a wholly owned subsidiary of
the Company. Gem was the original developer of The Reserve Hotel
& Casino ("The Reserve") under construction in Henderson, Nevada.
The Settlement Agreement provided that its effectiveness was
subject to its approval by the Nevada Gaming Commission acting
upon the recommendation of the Nevada State Gaming Control Board.
The Settlement Agreement became effective on June 19, 1997 upon
its approval by the Nevada Gaming Commission. Pursuant to the
Settlement Agreement, the Company has made an initial payment to
the Gem Stockholders of $4,000,000 and has issued to the Gem
Stockholders unsecured subordinated promissory notes in the
aggregate principal amount of $28,650,000. The terms of these
promissory notes and the other principal terms of the Settlement
Agreement are described in the Company's Quarterly Report on
Form 10-Q for the three months ended March 31, 1997, and the
Settlement Agreement has been filed as an exhibit thereto.
CONSTRUCTION OF THE RESERVE. The Company suspended
construction on The Reserve in March 1997 as a result of the
dispute with the Gem Stockholders. With the effectiveness of the
Settlement Agreement, the Company is preparing to accelerate
construction of The Reserve, and management currently believes
that Phase I of The Reserve will open in January 1998. Phase I
of The Reserve will have approximately 42,000 square feet of
casino space (with approximately 1,350 slot machines and 26 table
games), 224 hotel rooms, four restaurants, three bars and
lounges, a race and sports book, approximately 1,500 surface
parking spaces and a swimming pool. The food and beverage
operations and back-of-house facilities included in Phase I of
The Reserve will support both Phases I and II of The Reserve.
The total acquisition and construction budget for Phase I of The
Reserve is $118.0 million, including capitalized construction
period interest, preopening costs, Phase I and II design costs
and acquisition costs. As of May 31, 1997, approximately
$71.0 million of this budget remained to be expended.
Phase II of The Reserve, which will complete the Company's
initial development plans for The Reserve, is planned to include
approximately 28,000 square feet of additional casino area (with
the addition of approximately 600 slot machines and 20 table
games), the permanent porte cochere, a 1,500-space parking
structure and enhancements to the swimming pool and garden area
and the race and sports book facilities. The estimated
construction and development cost of Phase II of The Reserve is
estimated to be $35.0 million, including capitalized construction
period interest. The timing of construction of Phase II is
expected to be substantially dependent upon the Company's future
cash flow following the opening of The Reserve.
CONSTRUCTION OF HOTEL AT AMERISTAR CASINO VICKSBURG. As
previously reported, the Company is developing an eight-story,
148-room deluxe hotel across the street from the main entrance to
Ameristar Casino Vicksburg, in Vicksburg, Mississippi. It is
currently anticipated
<PAGE>that construction will be completed in March 1998. The
Company has established a development and construction budget for
this hotel of $9.8 million, including capitalized construction
period interest.
CAUTIONARY STATEMENT CONCERNING FORWARD LOOKING STATEMENTS.
The information included in this Report includes forward-looking
statements, such as statements concerning the respective designs,
construction schedules and budgets for The Reserve and the hotel
at Ameristar Casino Vicksburg. Actual results might differ
materially from those projected in or anticipated or contemplated
by these forward-looking statements due to various factors, many
of which are beyond the control of the Company, including the
availability and costs of financing to fund a portion of the
budgeted amounts for construction and development. Information
concerning certain other factors that may affect actual results
is set forth above and in the Company's other publicly available
reports on Forms 10-K, 10-Q and 8-K filed with the Securities and
Exchange Commission. In particular, attention is drawn to the
cautionary statements included under the caption "Management's
Discussion and Analysis of Financial Condition and Results of
Operations--Factors Affecting Forward-Looking Statements" in the
Company's Annual Report on Form 10-K, as amended, for the fiscal
year ended December 31, 1996.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the undersigned registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
AMERISTAR CASINOS, INC.
(Registrant)
Date: June 27, 1997
By: /S/ Thomas M. Steinbauer
Thomas M. Steinbauer,
Senior Vice President and
Chief Financial Officer
