Bally’s Closed ‘Dutch Auction’ Tender, Published Results

Bally’s Corporation, the hospitality and entertainment company operating casinos, resorts and online gaming, announced today the preliminary results of its modified “Dutch Auction” tender offer which expired at midnight NYC time on July 22, 2022.

Preliminary Numbers Released

According to the preliminary count of the depositary for the tender offer, American Stock Transfer & Trust Company, there were 4,858,465 validly tendered common shares and not validly withdrawn at or below the price of $22 per share, including 2,143,640 that were tendered through notice of guaranteed delivery.

Bally’s will pay an aggregate purchase price of $106,886,230 for the amount of validly tendered shares paying $22 per share according to the terms and conditions of the tender offer, and will also cover all fees and expenses relating to the stock purchases.

The amount of shares tendered represents approximately 9.2% of the company’s outstanding common shares and Bally’s expects that all tendered stock and not validly withdrawn to be purchased and that there will be no proration factor.

Bally’s outlined that the amount of shares tendered is preliminary and that it may change if not all shares tendered through notice of guaranteed delivery are not delivered within the two-day settlement period, leaving the final number to be confirmed by the depositary.

The depositary will announce the final number of shares tendered in the tender offer once the period of delivery of the shares tendered via notice of guaranteed delivery expires and the depositary completes its confirmation process.

Ballys’ outlined that payment for the shares accepted and the return of those tendered and not purchased will materialize promptly afterward.

More Share Repurchases in the Future

Bally’s Corporation explicitly stated that any future repurchases of stock may take place on terms similar to the ones in the tender offer or more or less favorable as the company has $334.6 million at its disposal under a previously announced capital return program.

The tender offer has Goldman Sachs acting as the lead dealer manager and Capital One Securities, Truist Securities and Wells Fargo Securities acting as co-dealer managers, while MacKenzie Partners is serving as the information agent.

Last month, Bally’s sold the properties under its two casinos in Rhode Island, Bally’s Twin River Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel to real estate investment trust Gaming and Leisure Properties, Inc. for a total price consideration of $1 billion, subject to customary regulatory approvals and, in the case of the Lincoln property, lender consent.

Bally’s will release its second quarter financial results on August 4, 2022, and will hold a conference call later on the same day to discuss its performance.

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