Business
Gaming and Leisure Properties, Inc. Completes Previously Announced Sale Leaseback Transaction with Bally’s for Tiverton, RI and Biloxi, MS Properties
WYOMISSING, Pa., Jan. 04, 2023 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or the “Company”), announced today that on
About this update from Gaming And Leisure Properties, Inc.
[{"type":"text","content":"WYOMISSING, Pa., Jan. 04, 2023 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or the “Company”), announced today that on January 3, 2023, it completed the previously announced acquisition from Bally's Corporation (NYSE: BALY) (“Bally’s) of the land and real estate assets of Bally's Tiverton Casino & Hotel in Tiverton, RI and Bally’s Hard Rock Hotel & Casino Biloxi in Biloxi, MS for $635 million in total consideration, inclusive of $15 million in the form of OP units. These properties were added to the Company’s existing Master Lease with Bally’s. The initial rent for the lease was increased by $48.5 million on an annual basis, subject to contractual escalations based on the Consumer Price Index, with a 1% floor and 2% ceiling, subject to CPI meeting a 0.5% threshold. The Master Lease has an initial term of 15 years (with 14 years remaining) followed by four five-year renewals at the tenant’s option. Normalized rent coverage on the Master Lease – which includes Bally’s Dover Casino Resort, Bally’s Evansville Casino & Hotel, Bally’s Quad Cities Casino & Hotel and Bally’s Black Hawk Casinos – is expected to be 2.0x in the first calendar year following closing. In connection with the closing, a $200.0 million deposit funded by GLPI in September 2022 was credited to the Company along with a $9.0 million transaction fee. Concurrent with the transaction’s closing, GLPI will draw upon its previously structured delayed draw term loan for $600 million to credit towards the closing. The amount of draw was influenced by the transaction’s tax structuring for Bally’s benefit. GLPI continues to have the option, subject to receipt by Bally’s of required consents, to acquire the real property assets of Bally’s Twin River Lincoln Casino Resort in Lincoln, RI prior to December 31, 2024 for a purchase price of $771 million and additional rent of $58.8 million. Peter Carlino, GLPI’s chairman and CEO, commented, “We are pleased to grow our master lease with Bally’s with two premier assets, and concurrently enter a new state with Rhode Island.” About Gaming and Leisure Properties GLPI is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance requ...