Business
Century Casinos, Inc. Completes Sale-Leaseback of Four Properties in Alberta, Canada
Funds to be used for growth initiatives and/or to paying down debt COLORADO SPRINGS, Colo., Sept. 6, 2023 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq
About this update from Century Casinos, Inc.
[{"type":"text","content":"Funds to be used for growth initiatives and/or to paying down debt \nCOLORADO SPRINGS, Colo., Sept. 6, 2023 /PRNewswire/ -- Century Casinos, Inc. (Nasdaq Capital Market®: CNTY) (\"Century Casinos\" or the \"Company\") announced that it completed the sale of 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\") to subsidiaries of VICI Properties Inc. (NYSE: VICI) (\"VICI\") for an aggregate purchase price of CAD 221.7 million (USD $162.4 million*) in cash. The Company retained approximately CAD 154.5 million (USD $113.2 million*) 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 was 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 (USD $12.7 million*). The annual rent escalator related to the Century Canadian Portfolio is capped at 2.5%. Additionally, 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.\n\"We are pleased to extend our good partnership with VICI to our Canada portfolio,\" Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, remarked. \"This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow,\" Haitzmann and Hoetzinger concluded.\nStifel acted as exclusive financial advisor to the Company, and Faegre Drinker Biddle & Reath LLP and Field LLP acted as legal counsel to the Company in connection with the transaction.\n*Based on the exchange rate USD/CAD 0.7325.\nAbout Century Casinos, Inc.:Century Casinos, Inc. is a casino entertainment company. In the United States the Company operates the following operating segments: (i) in the East, the Mountaineer Casino, Resort & Races in New Cumberla...