Regulation360 (April 24, 2020, 9:50 PM EDT) —
Jones Day represented Twin River Worldwide Holdings in reference to its buy of three resorts and casinos for $180 million, together with a $25 million buy of an Atlantic Metropolis property, in line with an announcement on Friday from Twin River.
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Twin River Worldwide Holdings Inc. is shopping for Eldorado Shreveport Resort and On line casino in Shreveport, Louisiana, in addition to MontBleu Resort On line casino & Spa in Lake Tahoe, Nevada, for $155 million from Eldorado Resorts Inc., and can be buying Bally’s Atlantic Metropolis Lodge & On line casino in Atlantic Metropolis, New Jersey, from Caesars Entertainment Corp. and Vici Properties Inc. for $25 million.
Casinos in Atlantic Metropolis have been struggling earlier than COVID-19 hit, and the pandemic has put additional monetary strain on these properties and compelled all of them to shut in the intervening time.
“These acquisitions symbolize a singular alternative to proceed executing on our growth and diversification technique at engaging valuation multiples,” George Papanier, CEO of Twin River, stated in a press release on Friday. “We see vital alternatives to create cross-marketing connections for patrons at a number of Twin River areas, and we look ahead to making use of our confirmed working and integration strategy to drive incremental revenues and money flows.”
The three properties have a mixed 2,092 resort rooms, three,318 slots and 176 tables. Eldorado Shreveport Resort and On line casino additionally has 6,000 sq. ft of conference area.
Eldorado Resorts had deliberate to promote the Louisiana and Nevada properties to Maverick Gaming LLC however has now terminated these sale agreements and returned deposits to Maverick, the corporate stated in a separate assertion on Friday.
In January, earlier than COVID-19 was declared a pandemic, Eldorado had reached a deal to promote the Louisiana property to Maverick for $230 million, whereas the sale value of the Nevada property was not disclosed. Eldorado is working to wrap an $8.58 billion purchase of Caesars, a deal Eldorado introduced final summer season.
“The settlement to divest Shreveport and MontBleu to Twin River Worldwide Holdings is in step with our continued deal with closing the Caesars transaction within the first half of 2020,” Tom Reeg, CEO of Eldorado, stated in a press release on Friday.
Concerning the Atlantic Metropolis property, Vici Properties will obtain roughly $19 million of the $25 million buy value whereas Caesars is slated to obtain proceeds of roughly $6 million from the sale, Caesars and Vici Properties stated in a separate assertion on Friday.
“We look ahead to the reopening of Bally’s Atlantic Metropolis as quickly as acceptable as soon as the general public well being emergency associated to COVID-19 has handed,” Caesars CEO Tony Rodio stated in a press release on Friday.
Vici Properties, an actual property funding belief, is predicated in New York and owns greater than 40 million sq. ft of properties, together with 28 gaming services.
“The sale of Bally’s Atlantic Metropolis demonstrates our ongoing dedication to work collaboratively with our tenants to optimize our particular person companies, even throughout these unprecedented instances,” John Payne, chief working officer of Vici Properties, stated in a press release on Friday.
The $155 million deal is anticipated to shut within the first half of 2021 and the $25 million deal in late 2020 or early 2021, in line with Twin River.
Macquarie Capital is Eldorado Resorts’ monetary adviser for the deal. Residents Capital Markets Inc. is advising Twin River.
Twin River is represented by Jones Day.
Eldorado Resorts is represented on its two gross sales by Jason Anderson, Deborah Conrad, Roy Jackson and Fiona Schaeffer of Milbank LLP.
Vici Properties is represented by Kramer Levin Naftalis & Frankel LLP.
Counsel data for Caesars Leisure was not instantly out there on Friday.
–Extra reporting by Joyce Hanson and Chelsea Naso. Modifying by Janice Carter Brown.
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