A little over a year after buying three casinos in Colorado and Twin River Worldwide Holdings Incorporated has now announced the signing of deals that are to see it take over gambling-friendly properties in Louisiana, Nevada and New Jersey.
The New York-listed firm used an official Friday filing to detail that the agreements involve the Bally’s Atlantic City venue from Caesars Entertainment Corporation in addition to Eldorado Resorts Incorporated’s Montbleu Resort Casino and Spa Lake Tahoe and Eldorado Resort Casino Shreveport developments.
Pricey particulars:
Twin River Worldwide Holdings Incorporated is already responsible for Rhode Island’s Twin River Casino Hotel and Tiverton Casino Hotel and revealed that the recently-inked arrangements are to involve it paying around $155 million for ownership of the four-star Montbleu Resort Casino and Spa Lake Tahoe and Eldorado Resort Casino Shreveport alongside about $25 million for control of the 1,251-room Bally’s Atlantic City.
Now the operator behind Colorado’s Golden Gates Casino, Mardi Gras Casino and Golden Gulch Casino, Twin River Worldwide Holdings Incorporated stated that these latest acquisitions form part of its ‘portfolio diversification strategy’ and are ‘expected to be immediately accretive to earnings’. It moreover pronounced that the deals will be funded from its existing cash reserves alongside an anticipated increase of its existing credit facility to give it an extra 2,092 hotel rooms as well as some 6,000 sq ft of additional convention space.
Estate expansion:
George Papanier, President and Chief Executive Officer for Twin River Worldwide Holdings Incorporated, used the filing to declare that the trio of venues involved in these deals feature a combined total of 176 gaming tables together with over 3,300 slots and that their agreed-upon prices remain ‘subject to customary post-closing adjustments’.
“These acquisitions represent a unique opportunity to continue executing on our expansion and diversification strategy at attractive valuation multiples. 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 cashflows.”
Gaining governance:
Twin River explained that the planned deal for the 438-room Montbleu Resort Casino is due to see it take over running the Nevada facility until at least the conclusion of 2035 while it hopes the compatriot arrangement for the Eldorado Resort Casino Shreveport will involve it assuming control over the Louisiana development’s real estate and operations by the end of the first half of 2021. In New Jersey and the firm described the Bally’s Atlantic City transaction as an ‘asset purchase’ that is destined to involve Caesars Entertainment Corporation remaining as the sole operator of the Boardwalk venue.
“Despite the uncertainties presented by the current health crisis, we continue to execute our strategy to position Twin River Worldwide Holdings Incorporated for long-term growth and profitability. Completion of these transactions will meaningfully enhance our financial profile while strengthening our presence in a number of key geographic markets.”
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