Bally’s Corporation has completed the sale of the land and real estate assets of Bally’s Kansas City Casino and Bally’s Shreveport Casino & Hotel to Gaming and Leisure Properties (GLPI).
The previously announced sale lease-back transaction is valued at $395 million, including $388 million in cash and $7 million in LP units.
The consideration includes $56 million reimbursement of prior capital expenditures at the properties, with the balance as gross sale proceeds.
Bally’s will use the proceeds from the transaction to pay down approximately $350 million that has been drawn against its $620 million revolving credit facility, with the balance to be allocated for capital expenditures and general corporate purposes.
“We are pleased to complete this transaction as it further solidifies Bally’s financial position and enhances Bally’s strong strategic partnership with GLPI,” said Bally’s executive vice president and chief financial officer Marcus Glover. “The proceeds from the monetization of the real estate underlying our Kansas City and Shreveport properties provide us with additional liquidity and flexibility to deploy capital towards our permanent casino project in Chicago and other exciting growth opportunities.”
GLPI chairman and CEO Peter Carlino commented: “We are pleased to announce the completion of our sale-leaseback transactions for Bally’s properties in Kansas City and Shreveport, which we expect will be accretive to our financial results.
“This transaction was executed at an attractive cap rate and expands our partnership with Bally’s, while strengthening our portfolio which has now grown to include 67 high-quality regional gaming assets.”
Shares in Bally’s Corporation (NYSE:BALY) closed marginally lower at $17.74 per share in New York Tuesday, while shares in Gaming and Leisure Properties Inc (NASDAQ:GLPI) closed 1.61 per cent lower at $48.99 per share.