Bally's Agrees To Sell Property Assets Of Two Rhode Island Casinos

Bally's Agrees To Sell Property Assets Of Two Rhode Island Casinos

Bally’s announced this week that it has “entered into a binding term sheet” with GLP Capital, L.P, to acquire “real property assets” of both Bally’s Rhode Island-based casinos, Twin River Lincoln Resort and Bally’s Tiverton Casino & Hotel for a total consideration of $1 billion.

 

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What’s in The Deal

GLP Capital, the operating partnership of Gaming and Leisure Properties, Inc., will receive these assets pending regulatory approvals. Twin River Lincoln Resort is subject to “lender consent.”

Following the terms of this deal, Bally’s will then lease both properties and continue to own, control, and manage all gaming operations of the facilities uninterrupted.

“Bally’s is excited to enter into this transaction with GLPI, further strengthening our growing relationship. The transaction will provide the Company with significant, long-term liquidity, ensuring that Bally’s is best positioned to continue executing its capital and strategic plan, as well as to capitalize on future opportunities presented in the market,” Bobby Lavan, Chief Financial Officer of Bally’s, said in a news release.

After the deal is complete, the two properties will be added to Bally’s Master Lease, an existing agreement between Bally’s and GLPI. The total annual rent will be $76.3 million.

The “Master Lease” is a 15-year pact with 14 years remaining, with four five-year tenant options.

 

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Rent is expected to be 2x in the following first calendar year after the deal is complete. The rent applies to all properties under the lease, which includes:

  • Bally’s Dover Casino Resort
  • Bally’s Evansville Casino & Hotel
  • Bally’s Quad Cities Casino & Hotel
  • Bally’s Black Hawk Casinos

GLP will also pre-fund, “at Bally’s election,” a deposit of $200 million, which will be “credited or repaid to GLP at the earlier of closing and Dec. 31, 2023” — this was done “in connection” to GLP’s commitment to “consummate Bally’s acquisitions.”

Additionally, Bally’s will pay a $9 million transaction fee at closing.

However, if third-party consents and approvals for Lincoln are not done “in a timely manner,” GLP will acquire the real property assets of the Hard Rock Hotel & Casino Biloxi in Mississippi instead. If this happens, along with Tiverton, the total consideration becomes $635 million with a combined annual rent of $48.5 million. 

Lastly, GLP will have the option to acquire Lincoln, pending consent, before Dec. 31, 2024. If that happens, the sale would be for $771 million, with rent being $58.8 million annually. 

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