Bally’s Secures More Credit Facility Commitments as it Sells Back Property

Bally’s Corporation announced recently that it has secured additional commitments to its revolving credit facility, expanding the extended maturity tranche to $510 million and setting a new maturity date of October 2028.

Here’s What Bally’s Promises

Bally’s also disclosed that all lenders holding a combined $670 million in revolving credit facility commitments have approved the proposed $735 million sale-leaseback of the Twin River Lincoln Casino Resort to Gaming and Leisure Properties Inc. before expenses and taxes. According to InvestingPro data, this deal comes as Bally’s carries approximately $5.74 billion in total debt and has a concerning current ratio of 0.49.

Both the expansion of the revolving credit facility and the approval to sell the real estate of the Twin River Lincoln Casino Resort are key steps in Bally’s strategy to improve financial flexibility and reduce its debt burden. When the company announced the sale-leaseback, it committed to lowering its secured debt and credit facilities by a total of $500 million, beginning with a permanent 7.5% reduction in outstanding RCF commitments, bringing them down to approximately $574 million.

In its announcement outlining these commitments, Bally’s stated it could reduce outstanding balances by up to 19%. Additionally, the planned sale of its interactive division to Intralot presents another potential source of capital to further pay down debt.

Bally’s operates 20 casinos worldwide, including locations in 11 US states and a retail casino in Newcastle, UK, generating $2.46 billion in annual revenue, according to its press release. The company might be able to add one more property in New York as its Bronx bid continued this summer despite an initial veto from the city’s mayor.

What Are Some Other Important Financial Decisions the Company Has Made Recently?

Other relevant recent developments in Bally’s finances include the company amending its credit agreement to boost its senior secured revolving credit facility by $50 million, extending commitments through 2028, in partnership with Jefferies Finance LLC and Deutsche Bank AG. This move complements a separate $460 million extension to its revolving credit facility, also maturing in 2028, and comes with unanimous approval from lenders for the sale-leaseback of its Twin River Lincoln Casino Resort.In addition, Bally’s has announced plans for a new entertainment resort on the Las Vegas Strip. The project will feature luxury hotel towers, an entertainment venue, and retail space, and will be located on a shared campus with a proposed Major League Baseball stadium.