Century Casinos to acquire three Eldorado facilities
The operator Century Casinos revealed that it has entered into a definitive agreement to acquire three Eldorado facilities.
US.- Century Casinos has announced that it has entered into a definitive agreement to acquire the operations of Isle Casino – Cape Girardeau, Lady Luck – Caruthersville and Mountaineer Casino, Racetrack & Resort from Eldorado Resorts for approximately US$107 million.
After closing the transaction, VICI Properties will acquire the real estate assets of the three properties for approximately US$278 million and the company will enter into a triple-net lease agreement with VICI for the three casino properties. The lease will have an initial annual rent of approximately US$25 million and an initial term of 15 years, with four five-year renewal options.
The company also revealed that it will finance the US$107 million purchase with a new credit facility that will be issued by Macquarie Capital. The transaction, which is expected to close in early 2020, is subject to antitrust approval and approvals of the Missouri Gaming Commission and the West Virginia Lottery as well as other customary closing conditions.
Upon closing this transaction, the company’s portfolio will increase to 10 casinos in North America that include over 6,700 gaming machines and 150 table games. On a pro-forma trailing twelve-month basis the company expects to generate 96% of its Adjusted EBITDA before rent from its North American casinos.
“This transaction further highlights our commitment to enhancing shareholder value,” Erwin Haitzmann, Co-Chief Executive Officer of Century Casinos remarked. “Cape Girardeau, Caruthersville and Mountaineer expand the strategic diversity of Century Casinos with attractive assets in strong, stable markets. The expected increase to our free cash flow will allow us to remain well positioned to reduce leverage and evaluate additional strategic growth opportunities,” Haitzmann said.
“We believe these assets are a great fit for our portfolio and will complement Century Casinos’ expertise in operating small to mid-sized casinos. We are pleased to partner with VICI Properties to structure this transaction in a manner that we expect will be immediately accretive to our operating results,” Hoetzinger concluded.
