The target firm should be worth no less than $500m, including the debt, and the ideal enterprise value should be more than $1bn. The paperwork was filed with the Securities and Exchange Commission. Bloomberg reported: “The deal could be upsized within a traditional 20% range, and by an additional 15% if underwriters opt to exercise a so-called greenshoe.”
Affinity CEO Mary Beth Higgins will lead the Gaming & Hospitality Acquisition Corp. She was a former executive at Vici Properties Inc. Other notable names associated with SPAC’s board include the former Las Vegas Mayor Jan Jones Blackhurst, who is now a Caesars' board member, former Ladbrokes CEO Richard Glynn and the industry veteran Daniel Cassella.
Bloomberg predicted that Affinity might seek out regional gambling companies, especially those that specialize in technology, equipment or digital platforms. Such properties can be sold by casino operators or businesses with a focus on distributed gaming.
Z Capital operates casinos in Iowa, Missouri and Nevada and expects EBITDA for 2020 to be close to $80m.
