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US – Twin River to buy three casinos from Eldorado and Caesars

By - 27 April 2020

Twin River Worldwide is buying three casinos, two from Eldorado Resorts and one from Caesars to smooth any competition concerns for the ongoing merger between Eldorado Resorts and Caesars.

The property divesting will see Twin River buy Eldorado Shreveport Resort and Casino in Louisiana and the Mont Bleu Resort Casino & Spa in Lake Tahoe, Nevada for an aggregate purchase price of $155m. Eldorado terminated its previously announced deal with Maverick Gaming and returned its deposits. Twin River is also buying Bally’s Atlantic City Hotel & Casino for $25m in cash.

Together, these acquisitions significantly expand Twin River’s footprint into three additional US states. 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 at the Eldorado Shreveport Resort and Casino.

“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, added: “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.”

“Despite the uncertainties presented by the current health crisis, we continue to execute our strategy to position Twin River for long-term growth and profitability,” Mr. Papanier added. “Completion of these transactions will meaningfully enhance our financial profile, while strengthening our presence in a number of key geographic markets.”

“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 optimise 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.”

Following the sale, Caesars will continue to operate Caesars Atlantic City, 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.

The Bally’s Atlantic City transaction is subject to regulatory approvals and other closing conditions. Bally’s Atlantic City will continue to be part of the Caesars Rewards network until closing.

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