Bally’s has agreed to sell the property assets of its two Rhode Island casinos to Gaming and Leisure Properties for $1bn.
US.- Bally’s Corporation has agreed a $1bn sale-and-leaseback deal for its Rhode Island casinos, Tiverton Casino and Hotel and Twin River Lincoln Casino. It will sell the property of both casinos to GLP Capital, Gaming and Leisure Properties’ operating partner.
Bally’s will then lease the two properties. It will continue to own, control, and manage all gaming operations at the facilities without interruption. It’s expected that both properties will be added to the existing master lease between Bally’s and GLPI, with incremental rent of $76.3m.
The master lease currently covers Bally’s Dover Casino Resort, Evansville Casino & Hotel, Quad Cities Casino & Hotel and Black Hawk Casinos. It has an initial term of 15 years, of which 14 remain, plus four five-year renewal options.
Bally’s chief financial officer Bobby Lavan said: “Bally’s is excited to enter into this transaction with GLPI, further strengthening our growing relationship. The transaction will provide the Company with significant, long-term liquidity, ensuring that Bally’s is best positioned to continue executing its capital and strategic plan, as well as to capitalize on future opportunities presented in the market,”
GLP has agreed to pre-fund a deposit of up to $200m, to be credited or repaid at either closing or December 31, 2023. If third-party approvals for the acquisition of Bally’s Twin River Lincoln are not received in a “timely” manner, GLP will instead acquire the real property assets of the Hard Rock Hotel & Casino Biloxi in Mississippi, alongside Tiverton, for $635m, with combined annual rent of $48.5m.