Century Casino Inc today announced a definitive agreement from El Dorado Resorts Inc. to acquire operations at Island Casino – Cape Girardo, Lady Luck Casino – Carothersville and Mountaineers Casino, Racetrack & Resort for approximately $107 million.

Upon closing the transaction, VICI Properties Inc. will acquire property assets of the three properties for approximately $278 million and the company will enter into a triple net lease agreement with VICI for the three casino properties. The lease is approximately $25 million in initial annual terms, with an initial period of 15 years, with four five-year renewal options. The acquired portfolio-level formal rent coverage ratio is 2.1 times.

The purchase price represents a 12-month proforma revenue of 4.1x before interest, tax, depreciation and amortization for the three casinos. This multiple excludes potential cost synergies and operational improvements. The acquisition is expected to contribute immediately to revenue as well as meaningfully improving the company’s free cash flow.

The company will finance a $107 million purchase with a new credit facility expected to be issued by Macquarie Capital. The company estimates that on a pro forma basis, the total leverage will be 3.5x and the net leverage will be 2.2x. The company expects to be able to do so quickly, given the growth across its existing portfolio, newly acquired properties, and the rise in Century Mile racetracks and casinos.

“This transaction further underscores our commitment to enhancing shareholder value,” said Ervin Heitzmann, co-CEO of Century Casino. “Cape Girado, Carothersville, and Mountaineer expand the strategic diversity of Century Casino with attractive assets in a strong and stable market. The expected increase in free cash flow will reduce leverage and allow us to remain well positioned to evaluate further strategic growth opportunities,” Heitzmann concluded.

“The acquisition of the business of Cape Girado, Carothersville, and Mountain Year will transform Century Casino into the premier local casino operator in North America,” said Peter Hoetzinger, co-CEO of Century Casino. “We believe these assets will greatly suit our portfolio and complement Century Casino’s expertise in small to medium casino operations. We are excited to work with VICI Properties to organize this transaction in a way that we expect to contribute immediately to operating results,” Hoetzinger concluded.

Isle Casino Cape Girardo is located in Girardo Cape, Missouri, located about 120 miles south of St. Louis, Missouri, overlooking the Mississippi River. The property opened in 2012 and consists of a dockside casino with 41,500 square feet of casino space, 863 gaming machines, 20 table games, three dining areas, a pavilion, and an entertainment center. The property also includes a variety of non-game amenities, including an event center.

Lady Luck Caruthersville is a riverboat casino located along the Mississippi River in Caruthersville, Missouri. The property opened in 1995 and consists of a dockside casino with 21,000 square feet of casino space, 507 slot machines, nine table games, two dining areas, 40,000 square feet of pavilions, and 28 spaces.

Mountaineer Casino, Racetrack, and Resort is a hotel, casino, entertainment, and live thoroughbred horse racing facility located in New Cumberland, West Virginia, an hour from downtown Pittsburgh, Pennsylvania. The property originally opened in 1951 with the opening of the casino in 1994 and features a 357-room hotel, approximately 1,486 slot machines, 36 table games, poker rooms, racetrack, and five dining areas.

Upon the close of the transaction, the company’s portfolio will grow to 10 casinos in North America that include more than 6,700 gaming consoles and 150 table games. On a 12-month-old pro forma basis, the company expects to generate 96% of adjusted EBITDA before leasing from its North American casinos.

The deal, expected to close in early 2020, is subject to anti-trust approvals and approvals from the Missouri Gaming Commission and West Virginia Lottery and other customary closing conditions.

Stifel serves as the exclusive financial advisor and Pegre Baker Daniels LLP serves as the company’s legal advisor in connection with the transaction. 온라인카지노사이트

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