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Melanie Porter June 29, 2022 3 min read
Bally’s Inks $1B Sale-and-Leaseback Deal for Rhode Island Casinos
Bally’s Corporation has said yes to a massive sale-and-leaseback deal valued at $1 billion for its Rhode Island casinos, Tiverton Casino and Hotel and Twin River Lincoln Casino. Both will be purchased by GLP Capital, which is Gaming and Leisure Properties’ operating partner. Once the sale will be completed, Bally’s will instantly lease them back and resume its ownership, control, and management functions for all casino gaming operations.
The Casinos May Be Added to the Current Master Lease
Both casinos may be added to the current master lease that the corporation and GLPI have in place at the moment, with an incremental rent amount set at $76.3 million. The initial term of the master lease is of 15 years, with 14 more years to go, along with the possibility to renew the contract every five years. The lease in question now covers the corporation’s Quad Cities Casino & Hotel, Dover Casino Resort, BlackHawk casinos, and Evansville Casino & Hotel.
Bally’s chief financial officer Bobby Lavan believes the new deal will strengthen the relationship between Bally’s and GLPI, further promoting their expansion. The corporation will also receive “significant, long-term liquidity” that will help it put its strategic and capital plans into. The massive injection of money will also help Bally’s take advantage of upcoming opportunities as part of the industry.
GLP has also decided to pre-fund a deposit that could reach $200 million. The deposit could be credited or repaid once the deal will close or at the end of next year, depending on whatever comes first. However, provided the necessary approvals from third parties for the acquisition of the Twin River Lincoln casino are not received on time, GLP will drop part of its plan with Bally’s and purchase the real property assets belonging to the Mississippi’s Hard Rock Hotel & Casino Biloxi in Mississippi. Tiverton Casino and Hotel would still be in the books for the amount of $635 million, along with a rent of $48.5 million a year for both properties
GLP developed a spectacular network of operating partners network consisting of more than 60 current and ex chief executive officers, leaders, and decision-makers in the business world part of versatile fields like casino & gaming, travel and tourism, lodging & hospitality, retail & lifestyle, and others.
At the beginning of May, Bally’s said no to an acquisition proposal by Standard General, considering the proposed price to be too low. The corporation is now getting ready to operate Chicago’s upcoming $1.7 billion casino given the green light by mayor Lori Lightfoot.
After finishing her master's in publishing and writing, Melanie began her career as an online editor for a large gaming blog and has now transitioned over towards the iGaming industry. She helps to ensure that our news pieces are written to the highest standard possible under the guidance of senior management.
Business June 29, 2022
Business June 29, 2022