Trans World Corporation (OTCMKTS:TWOC) Files An 8-K Other Events
Item 8.01. Other Events.
On March 1, 2017, Trans World Corporation (TWC or the Company)
announced that through its subsidiaries, Trans World Hotels
Entertainment a.s. (TWHE) and Trans World Hotels Germany GmbH
(TWHG), it purchased the ground lease rights to a four-star
business hotel located on the banks of the Danube River in Linz,
Austria.
The 176-room, river-front four-star hotel, which opened in 1995,
is approximately 35 minutes driving time from the Companys Route
55 Casino, located on the Czech-Austrian border near Dolni
Dvoriste, Czech Republic, and 2.5 hours driving time from its
Hotel Savannah/Route 59 complex, near Znojmo, Czech Republic.
TWCs management expects to see economic benefits from synergies
that can be developed between the businesses.
The total acquisition cost was $5.2 million inclusive of the $4.5
million purchase price and the deal structure involved TWCs
acquisition of 100% of the shares of Hotel Donauwelle
Betriebsgesellschaft m.b.H. which owned the long-term lease
rights through the year 2061. TWC paid cash of $1.1 million and
the balance was financed through the assumption of an existing
five-year bank loan in the amount of approximately $4.1 million
from Erste Bank, Austria, with fixed-interest of 2.95%, paid
quarterly. The loan will mature on December 31, 2021, to which
the remaining balance of approximately $2.0 million will be
either paid off or financed. TWC plans extensive renovations to
the guest rooms, lobby, restaurant, and meeting rooms, which will
be conducted in phases over the course of 2017 and 2018.
TWC issued a press release relating to its acquisition of the
hotel, which is filed herewith as Exhibit 99.1 and
incorporated herein by reference.
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(d) Exhibit No. |
Description |
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99.1 |
Press release by Trans World Corporation dated March 1, 2017. |
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About Trans World Corporation (OTCMKTS:TWOC)
Trans World Corporation (TWC) is primarily engaged in the gambling business in the Czech Republic and in the hospitality business in Germany. The Company operates through two segments: casino and hotel. The two independent casinos and Route 59 Complex are included in the casino segment. The hotel segment comprises the Hotel Columbus and Hotel Freizeit Auefeld. The Company is involved in the acquisition, development and management of gambling establishments, featuring live and mechanized gaming, including video gaming devices, such as video poker machines, primarily in Louisiana. The Company develops and/or acquires small-to-mid-size hotels of approximately 80-250 rooms located in or near metropolitan and resort areas of Europe, which may also include gambling operations. It owns and operates approximately three full-service casinos and three four-star hotels. The Company owns and operates its three casinos in the Czech Republic, all under the American Chance Casinos (ACC) brand. Trans World Corporation (OTCMKTS:TWOC) Recent Trading Information
Trans World Corporation (OTCMKTS:TWOC) closed its last trading session up +0.02 at 6.39 with 200 shares trading hands.