Bally’s agrees to sell Rhode Island real property assets in $1bn deal
Bally’s Corporation has entered into a $1bn sale-and-leaseback agreement for its Rhode Island real property assets.
GLP Capital, the operating partnership of Gaming and Leisure Properties Inc (GLPI), will acquire the real property of Bally’s Twin River Lincoln Casino & Resort and Tiverton Casino & Hotel.
Upon their sale, Bally’s will immediately lease back both properties and continue to own, control and manage all gaming operations.
It’s expected that both properties will be added to the existing master lease between Bally’s and GLPI, with incremental rent of $76.3m.
This master lease has an initial term of 15 years, of which 14 remain, plus four five-year renewal options. It currently covers Bally’s Dover Casino Resort, Evansville Casino & Hotel, Quad Cities Casino & Hotel and Black Hawk Casinos.
“Bally’s is excited to enter into this transaction with GLPI, further strengthening our growing relationship,” said Bobby Lavan, Bally’s Chief Financial Officer.
“The transaction will provide the company with significant, long-term liquidity, ensuring that Bally’s is best positioned to continue executing its capital and strategic plan, as well as to capitalise on future opportunities presented in the market.”
GLP has also agreed to pre-fund a deposit of up to $200m, to be credited or repaid at either closing or 31 December 2023, whichever comes sooner.
If all third-party approvals for the acquisition of Bally’s Twin River Lincoln are not received in a “timely” manner, GLP will instead acquire the real property assets of the Hard Rock Hotel & Casino Biloxi in Mississippi, as well as Tiverton, for $635m, plus a combined annual rent of $48.5m.
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