Bally’s Units $1B Rhode Island On line casino Property Take care of Gaming and Leisure

Bally’s (NYSE:BALY) is promoting the property belongings of its two Rhode Island casinos to Gaming and Leisure Properties (NASDAQ:GLPI) for $1 billion. It’s going to leaseback the venues from the gaming landlord, the businesses introduced right now.

An indication welcoming guests to Bally’s Twin River Lincoln On line casino Resort. The corporate is promoting the actual property of each its Rhode Island casinos. (Picture: ABC6)
Particulars of the transaction for Bally’s Twin River Lincoln On line casino Resort and Bally’s Tiverton On line casino & Lodge emerged simply 5 days after holders of $1.9 billion value of Bally’s debt employed authorized counsel. It’s a transfer that, on the time, indicated the collectors is probably not open to amending an settlement with the gaming firm that may enable for the sale of the gaming venues.
An announcement issued by Bally’s doesn’t particularly point out the potential authorized rift with collectors. However the firm lays another plan.
If all third-party consents and approvals for the acquisition of Lincoln will not be well timed acquired, then GLP will as an alternative purchase the actual property belongings of the Arduous Rock Lodge & On line casino Biloxi in Mississippi together with Tiverton for whole consideration of $635 million and a mixed annual lease for Tiverton and Biloxi of $48.5 million,” in line with the assertion.
Ought to that transaction develop into needed, GLP would achieve rights to amass the actual property of Bally’s Twin River Lincoln earlier than Dec. 31, 2024 for $771 million and extra lease of $58.8 million.
Bally’s, GLP Extending Relationship
Bally’s owns the majority of the property on which it casinos reside. But it surely has a beforehand present relationship with GLP, which is the gaming firm’s major landlord.

The beforehand present grasp lease accord between the regional on line casino operator and the actual property funding belief (REIT) covers Bally’s Dover On line casino Resort, Bally’s Evansville On line casino & Lodge, Bally’s Quad Cities On line casino & Lodge, and Bally’s Black Hawk Casinos. The Rhode Island venues will probably be folded into that settlement at incremental lease of $76.3 million.

“In reference to GLP’s dedication to consummate the Bally’s acquisitions, it additionally agreed to pre-fund, at Bally’s election, a deposit of as much as $200 million, which will probably be credited or repaid to GLP on the earlier of closing and December 31, 2023. As well as, Bally’s pays a $9 million transaction charge at closing,” in line with the assertion.
It’s believed Bally’s may use among the proceeds from the sale-leaseback to fund a Chicago built-in resort challenge. Final month, Bally’s was chosen because the successful bidder to develop a $1.7 billion casino-hotel on the Chicago River on town’s Close to North Facet.
GLP Promoting Fairness to Finance Deal
Pennsylvania-based GLP is promoting inventory to finance the acquisition of the Rhode Island casinos. Debt and working items are additionally believed to be concerned. The REIT mentioned it’s promoting 6.9 million shares and is granting underwriters of that transaction a 30-day window during which they will purchase one other 1.03 million shares.
Ought to the Rhode Island on line casino deal come to fruition, it should mark the 18th state during which GLP owns gaming venues.
Along with Bally’s, the REIT’s different well-known tenants embrace Caesars Leisure and Penn Nationwide Gaming.
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