Following agreements made with Eldorado Resorts, Caesars Entertainment and Vici Properties, Twin River Worldwide Holdings is to add three property to its rising portfolio.
The developer will purchase first of all Eldorado Shreveport Resort and Casino in Louisiana and MontBleu Resort Casino and Spa in Lake Tahoe, Nevada for $155 m from the former, as well as Bally’s Atlantic City Hotel and Casino for $25 m from Caesars, who will receive $6 m, and Vici, who will gain the remaining $19 m.
George Papanier, Twin River’s President & CEO explained: “These acquisitions represent a unique opportunity to continue executing on our expansion and diversification strategy at attractive valuation multiples.
“We see significant opportunities to create cross marketing connections for customers at multiple Twin River locations, and we look forward to applying our proven operating and integration approach to drive incremental revenues and cash flows.”
Twin River plans to close the Shreveport and Mont Bleu transactions in the first half of 2021, adding a combined 3,318 spaces, 2,092 hotel rooms, 176 table games and additional 6,000 square feet of conference space to its portfolio.
The sale of the Bally is expected to be finalised by the end of 2020 or early 2021, subject to FTC and gaming regulatory approvals, financing and other customary closing conditions.
Structured as an asset acquisition, the business would also obtain the licence to create a sportsbook and launch online sports betting and igaming, covering other properties of Bally’s and the property on which they are run.
Caesars CEO Tony Rodio said: “We look forward to the reopening of Bally’s Atlantic City as soon as appropriate once the public health emergency related to COVID-19 has passed. We appreciate Twin River’s commitment to this property, which has a great future ahead under its stewardship.”
John Payne, President and COO of Vici Properties, added: “The sale of Bally’s Atlantic City demonstrates our ongoing commitment to work collaboratively with our tenants to optimise our individual businesses, even during these unprecedented times.
“This transaction allows us to maintain the existing financial terms of our master lease with Caesars and helps balance our geographic diversification as we work to complete the acquisition of Harrah’s Resort Atlantic City.”