Bally’s completes lease-back sale of Bally’s Kansas City and Bally’s Shreveport to Gaming and Leisure Properties
Bally’s Corporation has completed the previously announced sale lease-back of certain real property interests underlying Bally’s Kansas City and Bally’s Shreveport to Gaming and Leisure Properties in a transaction valued at $395m in the aggregate, inclusive of $7m in LP units and $388m in cash.
The sale lease-back consideration includes approximately $56m reimbursement of prior capital expenditures at the properties, with the balance as gross sale proceeds. Bally’s will use the proceeds from the sale lease-back transaction to pay down amounts drawn against its $620m revolving credit facility, of which $350m was drawn as of September 30, 2024, with the balance to be allocated for capital expenditures and general corporate purposes.
The leases for Bally’s Kansas City and Bally’s Shreveport have been added to a new Master Lease that is cross-defaulted with Bally’s existing Master Lease with GLPI. Initial cash rent for MLA#2 is $32.2m on an annual basis, including customary annual escalators.
Marcus Glover, Executive Vice President and Chief Financial Officer of Bally’s, commented: “We are pleased to complete this transaction as it further solidifies Bally’s financial position and enhances Bally’s strong strategic partnership with GLPI. The proceeds from the monetization of the real estate underlying our Kansas City and Shreveport properties provide us with additional liquidity and flexibility to deploy capital towards our permanent casino project in Chicago and other exciting growth opportunities.”
Peter Carlino, Chairman and CEO of GLPI commented: “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. 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.”
Bally’s Kansas City Casino is located on the Missouri River in Kansas City, Missouri and recently completed a $70m renovation and expansion. The property features a 42,000 square foot casino with over 900 slot machines, 24 table games and more than 50 video poker and keno terminals. It also offers three restaurants, including a location of the award-winning Chickie’s & Pete’s sports bar, a full-service bar, nearly 3,000 square feet of event space and several entertainment lounges.
Bally’s Shreveport Casino & Hotel is located along the Red River in downtown Shreveport, Louisiana. The property features a 30,000 square foot casino with more than 950 slot machines, over 50 table games, a poker room, and a Bally Bet Sportsbook. It has a 400-room hotel with full-service spa, three on-site restaurants including an award-winning fine dining steakhouse and noodle bar, event spaces, live entertainment and two on-site nightclubs.
