Century Casinos has sold its real estate assets in Edmonton and Calgary, Alberta, to Vici Properties subsidiaries for a total of CA$221.7m (US$162.4m) in cash.
After accounting for various expenses and taxes, Century Casinos retained approximately CA$154.5m. This includes proceeds to be paid to minority owners of Century Downs.
As part of the deal, the Century Canadian Portfolio has been added to the existing lease agreement between VICI Properties Inc. and Century Casinos, Inc.
This will result in an annual rent increase of CA$17.3m. The annual rent increase is limited to 2.5% and the master lease term has been extended to a full 15 years with the option for four 5-year renewals.
Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos, said: "We are pleased to extend our good partnership with VICI to our Canada portfolio.
"This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow.”
Stifel acted as the exclusive financial advisor to the Company and Faegre Drinker Biddle & Reath LLP and Field LLP acted as legal counsel to the Company in connection with the transaction.
Meanwhile, Century Casinos released its Q2 2023 report recently.
In the second fiscal quarter, the company generated a net operating revenue of $136.8m, marking a substantial 23% year-on-year increase.
