Gaming and Leisure Properties (GLPI) has successfully closed the acquisition of the land and real estate assets of Bally’s Kansas City Casino and Bally’s Shreveport Casino & Hotel from Bally’s Corporation. The deal, valued at $395 million, is part of a sale-leaseback transaction announced earlier this year.
The transaction, which includes $388 million in cash and $7 million in limited partnership (LP) units, also covers a $56 million reimbursement for prior capital expenditures made at both properties. The balance is considered gross sale proceeds.
Bally’s Corporation intends to use the funds to reduce its $350 million debt drawn from a $620 million revolving credit facility. The remaining funds from the deal will be allocated to capital expenditures and other corporate needs.
GLPI’s Growing Regional Gaming Portfolio
Peter Carlino, Chairman and CEO of GLPI, expressed his satisfaction with the completion of the acquisition. “We are pleased to announce the completion of our sale-leaseback transactions for Bally’s properties in Kansas City and Shreveport, which we expect will be accretive to our financial results,” he said.
He added, “This transaction was executed at an attractive cap rate and expands our partnership with Bally’s, while strengthening our portfolio, which has now grown to include 67 high-quality regional gaming assets.”
GLPI’s acquisition represents a significant expansion of its real estate portfolio, particularly in the regional gaming sector. The properties in Kansas City and Shreveport are notable additions to the company’s holdings.
Bally’s Kansas City Casino: A Renovated Gem
Bally’s Kansas City Casino, located along the Missouri River in Kansas City, Missouri, is one of the newly acquired assets. The property has recently undergone a $70 million renovation and expansion. It features a sprawling 42,000-square-foot casino floor with over 900 slot machines, 24 table games, and more than 50 video poker and keno terminals. Additionally, the venue offers a range of amenities, including three restaurants, a full-service bar, nearly 3,000 square feet of event space, and several entertainment lounges. One of the standout dining options is Chickie’s & Pete’s sports bar, which is well-known for its award-winning menu and lively atmosphere.
Bally’s Shreveport: A Premium Experience
Bally’s Shreveport Casino & Hotel, located in downtown Shreveport, Louisiana, sits along the Red River. This property features a 30,000-square-foot casino with more than 950 slot machines and over 50 table games. It also includes a poker room and a Bally Bet Sportsbook, offering a comprehensive gambling experience for patrons. The hotel itself boasts 400 rooms, a full-service spa, and three on-site restaurants, including an award-winning steakhouse and noodle bar.
The casino also has expansive event spaces, live entertainment offerings, and two on-site nightclubs, making it a popular entertainment destination for locals and visitors alike.
Financial Impact and Future Expectations
This strategic acquisition marks another milestone in GLPI’s long-term growth plans, particularly in the regional gaming sector. The company’s diversified portfolio now includes a wide variety of assets, reinforcing its standing as a prominent player in the real estate investment trust (REIT) sector.
Peter Carlino’s comments indicate that GLPI expects the deal to be financially beneficial. With these assets now in their possession, the company anticipates stronger performance, largely driven by the profitable nature of the properties and their recent renovations.
Bally’s Use of Proceeds
For Bally’s, the sale leaseback arrangement serves as a means to strengthen its balance sheet. The company will use the proceeds to pay down a substantial portion of its outstanding debt. This aligns with Bally’s ongoing efforts to optimise its capital structure and invest in future growth opportunities.
The $350 million debt repayment will significantly reduce Bally’s financial obligations, while the remaining funds will support the company’s capital expenditure plans and corporate functions. The company’s strategy appears to be focused on maintaining financial flexibility while continuing to grow its operations.
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