Twin River Set to Purchase Three Casinos From Caesars and Eldorado Resorts

Twin River Worldwide Holdings has announced that it has entered into an agreement with Eldorado Resorts to purchase two land-based facilities from this operator. The gambling giant has also reported a deal with Caesars Entertainment regarding the acquisition of one of its own casinos.

Transactions are expected to be immediately accretive to earnings and significantly advance Eldorado’s portfolio diversification strategy.

The Three New Venues

The two Eldorado casinos in question are…

…Eldorado Shreveport Resort and Casino in Louisiana and the Mont Bleu Resort Casino and Spa in Lake Tahoe, Nevada.

The aggregate price for the two facilities is $155 million. Likewise, the Caesars Entertainment venue Twin will acquire is the Bally’s Atlantic City Hotel and Casino. The price for this one is $25 million in cash.

The agreed upon purchase prices are subject to customary post-closing adjustments.

Stronger Footprint

The three buys significantly expand Twin River’s presence in the three states – New Jersey.

The combined amount of slots is 3,318, along with 2,092 hotel rooms and 176 tables. There is the total 6000 square feet of convention space at the Eldorado Shreveport.

Detailed properties’ profiles are as follows:

• Shreveport is located in Shreveport, Louisiana. The property consists of approximately 1,400 slots, 54 tables, 403 hotel rooms and 6,000 sf of convention space.
• Mont Bleu is located in Lake Tahoe, Nevada and features approximately 418 slots, 17 tables and 438 hotel rooms.
• Bally’s is located in Atlantic City, New Jersey, with a prominent location in the center of the Atlantic City boardwalk. The property includes 1,500 slots, 105 tables and 1,251 hotel rooms.

Says Twin River’s President and CEO, George Papanier:

“These acquisitions represent a unique opportunity to continue executing on our expansion and diversification strategy at attractive valuation multiples. We see significant opportunities to create cross marketing connections for customers at multiple Twin River locations, and we look forward to applying our proven operating and integration approach to drive incremental revenues and cash flows.”

The Funding

He added that despite the current uncertainties, the company continues to execute the strategy of positioning themselves for long-term growth and profitability. “Completion of these transactions will meaningfully enhance our financial profile, while strengthening our presence in a number of key geographic markets.”

The transactions will be funded with cash on the hand and upsizing of the existing credit facility.

Eldorado transactions should be finalized in the first half of 2021. The Caesars one should be done before 2020’s end or in early 2021.

Source:

“Twin River Worldwide Holdings to Acquire Three Casinos from Eldorado and Caesars”, prnewswire.com, April 24, 2020.