Bally’s (NYSE:BALY) is merchandising the property assets of its ii Rhode Island casinos to Gaming and Leisure Properties (NASDAQ:GLPI) for $1 billion and will leaseback the venues from the gaming landlord the companies proclaimed today.
Details of the dealings for Bally’s Twin River Abraham Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel emerge just quint days after holders of $1.9 1000000000000 worth of Bally’s debt hired effectual counsel, a go that at the clip indicated the creditors may non live surface to amending an concord with the gaming company that would grant for the sale of the gaming venues.
A financial statement issued past Bally’s doesn’t specifically advert the potential sound rift with creditors, but the companion lays an alternative plan.
If all third-party consents and approvals for the acquisition of capital of Nebraska are not well timed(p) received, so GLP testament instead gain the real property assets of the Hard Rock Hotel & Casino Biloxi in Mississippi River along with Tiverton for add together consideration of $635 trillion and a combined annual hire for Tiverton and Biloxi of $48.5 million,” according to the statement.
Should that dealing turn necessary, GLP would get ahead rights to gain the real demesne of Bally’s Twin Falls River President Abraham Lincoln before Dec. 31, 2024 for $771 meg and additional split of $58.8 million.
Bally’s, GLP Extending Relationship
Bally’s owns the mass of the property on which it casinos reside, but it has a previously existing relationship GLP, which is the gaming company’s primary election landlord.
The antecedently existing skipper hire conformity betwixt the regional cassino manipulator and the real land investiture trustingness (REIT) covers Bally’s Dover Casino Resort, Bally’s Evansville Casino & Hotel, Bally’s Quad Cities Casino & Hotel and Bally’s Joseph Black Hawk Casinos. The Rhode Island venues testament live folded into that agreement at incremental lease of $76.3 million.
“In connexion with GLP’s dedication to virtuoso(a) the Bally’s acquisitions, it also agreed to pre-fund, at Bally’s election, a deposition of upward to $200 million, which testament live credited or repaid to GLP at the earlier of closure and December 31, 2023. In addition, Bally’s will make up a $9 gazillion dealing fee at closing,” according to the statement.
It’s believed Bally’s could use some of the proceeds from the sale-leaseback to fund a Windy City integrated resort project. Last month, Bally’s was selected as the winning bidder to make grow a $1.7 one thousand million casino-hotel on the Windy City River on the city’s Near North Side.
GLP Selling Equity to Finance Deal
Pennsylvania-based GLP is marketing stock to finance the purchase of the Rhode Island casinos. Debt and operating units are also believed to follow involved. The REIT said it’s merchandising 6.9 trillion shares and is granting underwriters of that dealing a 30-day window in which they can buoy buy another 1.03 million shares.
Should the Rhode Island casino deal add up to fruition, it testament score the 18th tell in which GLP owns gaming venues.
In add-on to Bally’s, the REIT’s other well-known tenants include Caesars Entertainment and William Penn National Gaming.
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