PROVIDENCE, RI, June 28, 2022 /PRNewswire/ — at Bally’s Corporation (NYSE: BALY) today announced that it has entered into a binding term sheet with GLP Capital, LP (“GLP”), the operating partnership of Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI”), to acquire the real estate assets of at Bally’s of them Rhode Island casino properties – at Bally’s Twin River Lincoln Casino Resort (“lincoln“) and at Bally’s Tiverton Casino & Hotel (“Tiverton“) – subject to customary regulatory approvals, with lincoln also subject to the consent of the lender. Pursuant to the terms of the transaction, at Bally’s will immediately re-lease both properties and will continue to own, control and manage all gaming operations of the facilities on an uninterrupted basis. The total purchase price is $1 billion.
Bobby Lavenderfinancial director of at Bally’ssaid, “at Bally’s is delighted to complete this transaction with GLPI, further strengthening our growing relationship. The transaction will provide the Company with significant long-term liquidity, ensuring that at Bally’s is best positioned to continue the execution of its capital and strategic plan, as well as to capitalize on future opportunities presented in the market.”
Both properties should be added to the existing at Bally’s Master Lease (the “Master Lease”) between GLPI and at Bally’swith an incremental rent of $76.3 million. The main lease has an initial term of 15 years (with 14 years remaining) followed by four five-year renewals at the tenant’s option. Coverage of normalized rents on the Master Lease – which includes at Bally’s Dover Casino Resort, at Bally’s Evansville Casino and Hotel, at Bally’s Quad Cities Casino & Hotel and at Bally’s Black Hawk Casinos – expected to grow 2.0x in the first calendar year following the completion of the acquisition of the real estate assets of at Bally’s Rhode Island Properties.
As part of GLP’s commitment to achieving the at Bally’s acquisitions, it has also undertaken to pre-finance, at Bally’s election, a deposit of up to $200 millionwhich will be credited or reimbursed to GLP at the earliest between the closing and December 31, 2023. In addition, at Bally’s will pay a $9 million closing transaction fees.
If all third party consents and approvals for the acquisition of lincoln are not received on time, GLP will instead acquire the real estate assets of the Hard Rock Hotel & Casino Biloxi in Mississippi in the same way Tiverton for full consideration of $635 million and a combined annual rent for Tiverton and Biloxi of $48.5 million. In this case, GLP will also have the option, subject to obtaining the required consents, to acquire the real estate of lincoln prior to December 31, 2024 for a purchase price of $771 million and additional rent of $58.8 million.
About at Bally’s society
at Bally’s Corporation is a global casino entertainment company with a growing omnichannel presence of online sports betting and iGaming offerings. It currently owns and operates 14 casinos in 10 states, a racetrack in Colorado and has access to OSB licenses in 18 states. It also owns Gamesys Group, a leading global online gaming operator, Bally Interactive, a premier sports betting platform, Monkey Knife Fight, the fastest growing daily fantasy sports site in North AmericaSportCaller, a leading global provider of B2B free games, and Telescope Inc., a leading provider of real-time fan engagement solutions.
With approximately 10,000 employees, at Bally’s Casino operations include over 15,800 slot machines, 500 table games and 5,300 hotel rooms. Following the closing of the previously announced transaction with Tropicana Las Vegas (NV), as well as the completion of the construction of a land-based casino near the Nittany Mall in State College, Pennsylvania, at Bally’s will own and operate 16 casinos in 11 states. Its shares trade on the New York Stock Exchange under the symbol “BALY”.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements can generally be identified by the use of words such as “anticipate”, “believe”, “expect”, “intend”, “plan” and “will” or, in each case , their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Accordingly, these statements are not guarantees of future performance and actual events may differ materially from those expressed or implied by the forward-looking statements. Any forward-looking statements made by at Bally’s in this press release, its reports filed with the Securities and Exchange Commission (the “SEC”) and other public statements made from time to time speak only as of the date of their publication. New risks and uncertainties arise from time to time, and it is impossible for at Bally’s to predict or identify all of these events or how they may affect him. at Bally’s has no obligation and does not intend to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to those included at Bally’s Annual reports on Form 10-K, quarterly reports on Form 10-Q and other reports filed by at Bally’s with the SEC. These statements constitute at Bally’s warnings under the Private Securities Litigation Reform Act of 1995.
Executive Vice President and Chief Financial Officer
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