Bally’s Corporation, a United States casino operator, recently declared that it has signed a binding agreement in which it will offload two properties located on Rhode Island for $1 billion cash to Gaming and Leisure Properties Incorporated. The firm’s headquarters are in Providence and it made a press release on Tuesday explaining more about the arrangement.
It involves the 83-room cozy Bally’s Tiverton Casino and Hotel and Bally’s Twin River Lincoln Casino Resort. But, customary regulatory approvals will influence their ownership transfer as they also need lender consent.
Bally’s revealed that it plans to lease back the Rhode Island pair’s operation under a 15-year lease agreement from Gaming and Leisure Properties Incorporated.it will include a $76.3 million annual rent increment.
More About the Enterprise
Twin River Worldwide Holdings Incorporated changed its name to Bally’s Corporation in 2020. It runs 14 casinos in the country including Eldorado Resort Casino Shreveport and Bally’s Atlantic City.
The operator has fully owned the 163-room Bally’s Twin River Lincoln Casino Resort since 2005 and it has spent $22 million when buying the Bally’s Tiverton Casino and Hotel. If the Bally’s Twin River Lincoln Casino Resort’s part of the agreement won’t be received on time, the gaming operator revealed that the arrangement will give Gaming and Leisure Properties Incorporated a go-ahead to buy the Hard Rock Hotel and Casino Biloxi’s real estate assets.
The seller stated that if that happens, it will lower the two venues’ price to $635 million and compel them to pay $48.5 million as annual rent on the Mississippi and Rhode Island enterprises.
The Casinos’ Sale
If the above eventuality happens, Bally’s Corporation stated that Gaming and Leisure Properties Incorporated would have an opportunity to buy Bally’s Twin River Lincoln Casino Resort before 2025 after getting the necessary consents. The real estate investment adjunct from Penn National Gaming Incorporated nine years ago. The gaming operator added that the agreement would set the Rhode Island venue’s purchase price at $771 million and pay an extra $58.8 million as annual rent.
The Loan Largess
Bally’s Corporation hired Bobby Lavan as its Chief Financial Officer. He explained in the press release that the agreement will make Gaming and Leisure Properties Incorporated pay $200 million as an initial deposit. The official added that Bally’s has agreed to repay the money before the end of 2023 and $9 million as a closing transaction fee.
Lavan said in his statement that Bally’s Corporation is glad to make the arrangement with Gaming and Leisure Properties Incorporated to strengthen their relationship. He claimed that the transaction will offer Bally’s vital long-term liquidity. Also, it will improve its position to implement its strategic and capital plan as it maximizes any arising opportunities in the market in the future.
Bally’s Corporation got a go-ahead in May to build a Las Vegas-style casino in downtown Chicago. It has been on a buying spree of late due to several deals to buy Monkey Knife Fight (a daily fantasy sports company), SportCaller ( an online games developer), Gamesys Group ( a British online gaming company), and Bet Works Corporation ( a digital services and technology company).
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