Business
Century Casinos, Inc. Announces Sale-Leaseback of Four Properties in Alberta, Canada
COLORADO SPRINGS, Colo., May 17, 2023 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) ("Century Casinos" or the "Company"), announced
About this update from Century Casinos, Inc.
[{"type":"text","content":"COLORADO SPRINGS, Colo., May 17, 2023 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) (\"Century Casinos\" or the \"Company\"), announced that it has entered into a definitive agreement for subsidiaries of VICI Properties Inc. (NYSE: VICI) (\"VICI\") to acquire the real estate assets of Century Casino & Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino in Edmonton, Alberta and Century Downs Racetrack and Casino (\"Century Downs\") in Calgary, Alberta (collectively, the \"Century Canadian Portfolio\") for an aggregate purchase price of CAD 221.7 million ($164.4 million based on the exchange rate on May 16, 2023) in cash. The purchase price includes CAD 192.3 million ($142.6 million based on the exchange rate on May 16, 2023) to be paid to subsidiaries of Century Casinos and approximately CAD 29.4 million ($21.8 million based on the exchange rate on May 16, 2023) to acquire the fee simple real estate interest in Century Downs from the owner of such interest. The Company anticipates retaining approximately CAD 154.5 million ($114.6 million based on the exchange rate in effect on May 16, 2023) of the purchase price after giving effect to the purchase of the Century Downs land, selling expenses, Canadian and US taxes and proceeds to be paid to the minority owners of Century Downs.\n\n \n \n \n \n \n \n\n \nSimultaneous with the closing of the transaction, the Century Canadian Portfolio will be added to the existing triple-net master lease agreement between subsidiaries of VICI and subsidiaries of the Company (the \"Master Lease\") and annual rent will increase by CAD 17.3 million ($12.8 million based on the exchange rate on May 16, 2023) representing an implied acquisition capitalization rate of 7.8%. The property-level rent coverage ratio under the Master Lease, adjusted for the pending acquisition of Rocky Gap Casino Resort and the Century Canadian Portfolio, is expected to be approximately 2.0x.\nAdditionally, the term of the Master Lease will be extended such that, upon closing of the transaction, the lease will have a full 15-year initial base lease term, with four 5-year renewal options. The Company's obligations under the Master Lease will continue to be guaranteed by Century Casinos, Inc.\n\"We are pleased to extend our good partnership with VICI to our Canada portfolio,\" Er...