– Purchase Price of $82.6 Million With Initial Rent of $9.0 Million –
– Properties Will Be Operated by Penn National Gaming, Inc. –
– Acquisition Is Expected To Be Immediately Accretive –
Gaming and Leisure Properties, Inc. (Nasdaq:GLPI) (“GLPI” or the “Company”) today announced that it has entered into a definitive agreement to acquire the real estate assets of Bally’s Casino Tunica and Resorts Casino Tunica located in Robinsonville, Mississippi for $82.6 million. The two properties combined include 75,000 casino square feet, 1,747 slot machines and 25 table games. In addition to the casinos, the properties include six restaurants, 201 hotel rooms and 18,000 square feet of meeting space. The properties will be operated by Penn National Gaming, Inc. (NASDAQ:PENN) and will be added to the existing master lease with Penn. Initial rent of $9.0 million, which equates to 2.3 times rent coverage on combined property adjusted EBITDA for the twelve months ended December 31, 2016, is subject to escalators and adjustments consistent with the other master lease properties. The transaction, which is expected to be immediately accretive, is subject to regulatory approval and is expected to close in the second quarter of 2017. The transaction is expected to be funded with a combination of debt and equity, within the Company’s existing Revolving Credit Facility and ATM program.
Chief Executive Officer, Peter M. Carlino, commented, “The acquisition of Bally’s and Resorts in Tunica reflects the Company’s focus on creating shareholder value by completing accretive transactions at attractive multiples. Additionally, the transaction demonstrates our ability to work with our existing partners to create opportunities that are mutually beneficial. Penn has extensive experience operating in the Tunica market and has the ability to effectively maximize the operating potential of the properties. Inclusion of these assets in the master lease is an important benefit of this transaction as it will increase asset diversification, improve aggregate rent coverage and further enhance the benefit of cross-collateralization.”
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