South Coast Casino to be Sold

Boyd Gaming Corporation (NYSE: BYD) today announced that it has reached an agreement to sell the South Coast Hotel and Casino to Michael Gaughan for a purchase price equal to the net proceeds from the sale of approximately 15.8 million shares of Boyd Gaming stock owned by Mr. Gaughan. A minimum of 75% of the purchase price will be paid to the Company in cash, as a result of a secondary stock offering by Mr. Gaughan during the next 60 days.

The transaction, which is expected to be completed by the end of the year, is subject to a minimum purchase price, the deposit by Mr. Gaughan of the cash portion of the purchase price in escrow within 60 days of today's date, customary licensing and regulatory approval

2006-07-26