nder the deal announced on Monday, Icahn Enterprises will sell six of the eight Tropicana casino properties it now runs to Gaming and Leisure Properties for USD 1.21 B. The agreement also provides for the gaming and hotel operations to be merged into Eldorado Resorts for an aggregate consideration of approximately $1.85 billion. Eldorado Resorts will pay the remaining $640 million and lease the properties from GLPI for an initial 15-year period.
Eldorado owns and operates twenty properties in ten U.S. states, including Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, Pennsylvania and West Virginia.
Billionaire investor Carl Icahn first acquired an interest in Las Vegas-based Tropicana in 2008 when it was in the throes of bankruptcy.
Tropicana emerged from bankruptcy protection in 2010 under a $200 million deal backed by Icahn, and owns and operates eight casinos and resorts in Indiana, Louisiana, Missouri, Mississippi, Nevada, New Jersey and Aruba.
Tony Rodio, President and CEO of Tropicana, stated: "I am incredibly proud of what the entire Tropicana team has been able to accomplish over the past 8 years, taking Tropicana from bankruptcy to one of the industry's true success stories. I would like to thank Carl Icahn, Icahn Enterprises and the Tropicana Board of Directors for their personal support, financial commitment and the confidence that they have shown in Tropicana's management. This tremendous financial turnaround would not have been possible without it. Through their commitment and investment, Tropicana has been able to construct new casinos in Evansville, Indiana and Greenville, Mississippi and substantially renovate our other properties, including, most significantly, Tropicana Atlantic City, creating new employment opportunities and hundreds of temporary construction jobs in the process since our operations began in 2010. I would also like to thank the thousands of Tropicana team members whose hard work, dedication, and commitment to excellence also played a huge part in our accomplishment."
The transaction does not include Tropicana's Aruba assets, which will be disposed of as a condition to closing. The aggregate consideration of approximately $1.85 billion will be increased by the amount of the net proceeds received in connection with the Aruba disposition and will be further adjusted to pay corporate-level taxes.
The transaction is expected to close in the second half of 2018, subject to receipt of required gaming approvals, termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. The transaction is not subject to any financing condition.
Thompson Hine LLP acted as legal advisor to the Company and Jefferies LLC delivered a fairness opinion to the Company's Board of Directors in connection with the transaction.