"Together, these acquisitions significantly expand Twin River's footprint into three additional U.S. states," the company explained in a statement released Friday. The three properties combined contain 3,318 slots, 2,092 hotel rooms and 176 tables, in addition to 6,000 square feet of convention space.
Caesars Entertainment and VICI Properties announced Friday they have reached an agreement to sell the Bally’s Atlantic City Hotel & Casino to Twin River Worldwide Holdings for approximately $25 million in cash.
As reported by both companies, VICI will receive approximately $19 million from the sale, while Caesars will receive approximately $6 million.
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.
Following the sale, Caesars will continue to operate the property, which will include the Wild Wild West casino area and The Book sports wagering facility, and Harrah’s Resort Atlantic City. VICI Properties will continue to own the land and real estate associated with Caesars Atlantic City, including the Wild Wild West casino area.
“We look forward to the reopening of Bally’s Atlantic City as soon as appropriate once the public health emergency related to COVID-19 has passed,” said Caesars CEO Tony Rodio. “We appreciate Twin River’s commitment to this property, which has a great future ahead under its stewardship.”
“The sale of Bally’s Atlantic City demonstrates our ongoing commitment to work collaboratively with our tenants to optimize our individual businesses, even during these unprecedented times,” said John Payne, President and COO of VICI Properties. “This transaction allows us to maintain the existing financial terms of our master lease with Caesars and helps balance our geographic diversification as we work to complete the acquisition of Harrah’s Resort Atlantic City.”
The Company's proposed acquisition of these properties is subject to FTC approval and is conditioned upon the consummation of the merger of Eldorado and Caesars.
Separately, the company also announced an agreement with Eldorado Resorts to acquire Eldorado Shreveport Resort and Casino in Shreveport, Louisiana; and the Mont Bleu Resort Casino & Spa in Lake Tahoe, Nevada, for an aggregate purchase price of $155 million.
Under the terms of the agreement, Twin River is acquiring Shreveport's operations and real estate and Mont Bleu's operations. It has entered into an amended agreement with Mont Bleu's landlord, including extension of the lease term to the end of 2035.
Located in Shreveport, Louisiana, Eldorado Shreveport Resort and Casino 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.
"These acquisitions represent a unique opportunity to continue executing on our expansion and diversification strategy at attractive valuation multiples," commented George Papanier, President and Chief Executive Officer of Twin River. "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."
Soo Kim, Chairman of the Twin River Board of Directors, stated, "This is a great deal for Twin River, and diversifies our business across eight states. It reaffirms our commitment to employees, customers and the communities in which we operate that Twin River will be stronger than ever."