Bally’s (NYSE:BALY) is promoting the property property of its two Rhode Island casinos to Gaming and Leisure Properties (NASDAQ:GLPI) for $1 billion and can leaseback the venues from the gaming landlord the businesses introduced at the moment.
Particulars of the transaction for Bally’s Twin River Lincoln On line casino Resort and Bally’s Tiverton On line casino & Lodge emerge simply 5 days after holders of $1.9 billion price of Bally’s debt employed authorized counsel, a transfer that on the time indicated the collectors might not be open to amending an settlement with the gaming firm that will enable for the sale of the gaming venues.
A press release issued by Bally’s doesn’t particularly point out the potential authorized rift with collectors, however the firm lays another plan.
If all third-party consents and approvals for the acquisition of Lincoln are usually not well timed acquired, then GLP will as a substitute purchase the actual property property of the Onerous Rock Lodge & On line casino Biloxi in Mississippi together with Tiverton for complete consideration of $635 million and a mixed annual hire for Tiverton and Biloxi of $48.5 million,” in keeping with the assertion.
Ought to that transaction change into needed, GLP would achieve rights to amass the actual property of Bally’s Twin River Lincoln earlier than Dec. 31, 2024 for $771 million and extra hire of $58.8 million.
Bally’s, GLP Extending Relationship
Bally’s owns the majority of the property on which it casinos reside, however it has a beforehand present relationship GLP, which is the gaming firm’s major landlord.
The beforehand present grasp lease accord between the regional on line casino operator and the actual property funding belief (REIT) covers Bally’s Dover On line casino Resort, Bally’s Evansville On line casino & Lodge, Bally’s Quad Cities On line casino & Lodge and Bally’s Black Hawk Casinos. The Rhode Island venues might be folded into that settlement at incremental hire of $76.3 million.
“In reference to GLP’s dedication to consummate the Bally’s acquisitions, it additionally agreed to pre-fund, at Bally’s election, a deposit of as much as $200 million, which might be credited or repaid to GLP on the earlier of closing and December 31, 2023. As well as, Bally’s pays a $9 million transaction payment at closing,” in keeping with the assertion.
It’s believed Bally’s might use among the proceeds from the sale-leaseback to fund a Chicago built-in resort undertaking. Final month, Bally’s was chosen because the profitable bidder to develop a $1.7 billion casino-hotel on the Chicago River on town’s Close to North Facet.
GLP Promoting Fairness to Finance Deal
Pennsylvania-based GLP is promoting inventory to finance the acquisition of the Rhode Island casinos. Debt and working models are additionally believed to be concerned. The REIT stated it’s promoting 6.9 million shares and is granting underwriters of that transaction a 30-day window by which they will purchase one other 1.03 million shares.
Ought to the Rhode Island on line casino deal come to fruition, it would mark the 18th state by which GLP owns gaming venues.
Along with Bally’s, the REIT’s different well-known tenants embody Caesars Leisure and Penn Nationwide Gaming.