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Eldorado To Acquire Operating Assets Of Tropicana Entertainment - Quick Facts

Eldorado Resorts, Inc. (ERI) announced a definitive agreement to acquire Tropicana Entertainment Inc. in a cash transaction that is valued at $1.85 billion. Eldorado is acquiring the operating assets of seven casinos in six states, including two in Nevada. Separately, Gaming and Leisure Properties, Inc. (GLPI) announced a definitive agreement to acquire the real estate assets of six casino properties from Tropicana Entertainment. Gaming and Leisure Properties will pay $1.21 billion, excluding taxes and expenses, and enter into a master lease with Eldorado for the acquired real estate and that Eldorado will fund the remaining $640 million of cash consideration payable in the acquisition. The transaction is expected to be immediately accretive to Eldorado's free cash flow and earnings per share.

Eldorado will acquire the operating assets of these properties and lease the real estate from Gaming and Leisure Properties through a new master lease with a 15 year initial term and four 5 year renewal periods. Initial annual rent is $110 million and the rent coverage is expected to be not less than 1.85 times as defined by the lease.

Gaming and Leisure Properties said, upon completion of the deal, along with the previously announced transactions related to the acquisition of Pinnacle Entertainment, Inc. (PNK) by Penn National Gaming, Inc. (PENN), the company anticipates its pro forma ratio of Total Debt to Adjusted EBITDA will increase to no more than 5.5 times. In aggregate, the two transactions are expected to result in dividend per share accretion of 8% to 10% on the first quarter annualized dividend of $2.52 per share.

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