In a $195m deal with Marnell Gaming, the Colorado-based casino operator will purchase 50% of Smooth Bourbon LLC, the subsidiary company responsible for the resort’s real estate, and 100% of Nugget Sparks LLC, which manages the property’s operations.
Broken down, this represents $95m for Smooth Bourbon and $100m for Nugget Sparks, which will enter into a lease of the property for an annual rent of $15m. Century will also have a five-year option to purchase the remaining 50% of Smooth Bourbon for $105m plus 2% per annum.
Goldman Sachs Bank USA has provided a commitment letter for $330m in senior secured term loan financing to support the acquisition, refinance Century’s existing debt and for “general corporate purposes.”
Nugget Casino Resort is located in Sparks, Nevada, approximately three miles from Reno, “The Biggest Little City in the World.”
The establishment consists of 50,200 square feet of casino space, 859 slot machines, 29 table games, 1,382 hotel rooms and seven dining venues.
“We have been looking at entering the Reno market for a long time, and we believe the Nugget is a perfect fit for our portfolio,” said Erwin Haitzmann and Peter Hoetzinger, Co-CEOs of Century Casinos.
“We look forward to welcoming the great team at the Nugget to Century Casinos. We believe there is a lot of upside to this transaction and that we identified some areas of improvement to continue the Nugget’s growth.
“We expect the Nugget to seamlessly integrate and provide added synergies for Century Casinos’ US portfolio.”