Penn National Gaming, Inc. today announced that it has entered into a definitive agreement to acquire operations at Margaritaville Resort Casino Bossier City, Louisiana, for approximately $115 million. The transaction is expected to be immediately added to operational results upon closure.
"We are pleased to partner with VICI Properties Inc VICI to form a tuck-in acquisition of the latest casino resort in Bossier City, consistent with trading standards that are sensitive to free cash flow, strategically diversify our revenue and operating base, and provide a clear path to realizing significant synergies," said Timothy Wilmot, CEO of Penn National. "With a 5.5x purchase of 12-month adjusted earnings before interest, tax, depreciation, amortization and management fees, which are reduced to no more than 5.0x due to synergies, Penn National believes this transaction further supports our efforts to improve shareholder value."
Upon closing of the deal, Penn National will enter into a triple net lease with VICI Properties Inc. for its Margaritaville facility. The lease is approximately $23 million per year for the initial year, with an initial period of 15 years and four five-year renewal options. The rate of rent guaranteed in the first year after closing is expected to be 1.9x and the tenant's obligation under the lease is guaranteed by Penn National.
The proposed transaction will further expand Penn National's regional gaming platform with complementary characteristics to its pro forma operating base after the company's pending acquisition of Pinnacle Entertainment, Inc. When the Margaritaville transaction and the pending Pinnacle transaction (and considering the announced sale) close, Penn National's portfolio of regional gaming facilities will grow from 18 jurisdictions to 40 properties.
Penn National does not expect the deal to change the company's expectations that it will end the year with net rent-adjusted leverage mid-five, a format for the completion of its Pinnacle acquisition.
Built in 2013, the Margaritaville Resort Casino is the premier place to play, stay, eat, and entertain in northern Louisiana. The property has 26,500 square feet of casino space, 395 hotel rooms, island-style escape themes, six restaurant and food and beverage stores, a 15,000 square feet 1,000-seat theater, and 9,500 square feet of conference space. The Margaritaville Resort Casino generated approximately $44 million in adjusted EBITDADAM for the 12-month period ended March 31, 2018. 바카라사이트
The deal, which is expected to close in the second half of 2018, is subject to approval from the Louisiana Gaming Control Board and other customary closing conditions.
0コメント