Penn National Gaming is buying Margaritaville Resort Casino in Bossier City, Louisiana, for approximately $115m.
Timothy Wilmott, Penn National’s Chief Executive Officer, said: “We are pleased to partner with VICI Properties Inc. to structure this tuck-in acquisition of Bossier City’s newest casino resort, which is consistent with our criteria for transactions that are accretive to free cash flow, strategically diversify our revenue and operating base, and present well-defined paths to the realization of significant synergies.”
Penn National will enter into a triple net lease agreement with VICI Properties for the Margaritaville facility. The lease will have an initial annual rent of approximately $23m and an initial term of 15 years.
Built in 2013, Margaritaville Resort Casino is the premier venue for gaming, lodging, dining and entertainment experiences in Northern Louisiana. The property features 26,500 square feet of casino space, 395 hotel rooms, an island-style escape theme, six restaurants and food and beverage outlets, a 15,000 square foot 1,000-seat theater and 9,500 square feet of meeting space. Margaritaville Resort Casino generated adjusted EBITDAM of approximately $44m for the 12 month period ended March 31, 2018.