WYOMISSING, Pa., March 28, 2017 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (Nasdaq:GLPI) announced that it has entered into a definitive agreement to acquire the real estate assets of Bally’s Casino Tunica and Resorts Casino Tunica located in Robinsonville, Mississippi for $82.6 million. The two properties combined include 75,000 casino square feet, 1,747 slot machines and 25 table games. In addition to the casinos, the properties include six restaurants, 201 hotel rooms and 18,000 square feet of meeting space. The properties will be operated by Penn National Gaming, Inc. (NASDAQ:PENN) and will be added to the existing master lease with Penn. Initial rent of $9.0 million, which equates to 2.3 times rent coverage on combined property adjusted EBITDA for the twelve months ended December 31, 2016, is subject to escalators and adjustments consistent with the other master lease properties. The transaction, which is expected to be immediately accretive, is subject to regulatory approval and is expected to close in the second quarter of 2017. The transaction is expected to be funded with a combination of debt and equity, within the Company’s existing Revolving Credit Facility and ATM program.
Chief Executive Officer, Peter M. Carlino, commented, “The acquisition of Bally’s and Resorts in Tunica reflects the Company’s focus on creating shareholder value by completing accretive transactions at attractive multiples. Additionally, the transaction demonstrates our ability to work with our existing partners to create opportunities that are mutually beneficial. Penn has extensive experience operating in the Tunica market and has the ability to effectively maximize the operating potential of the properties. Inclusion of these assets in the master lease is an important benefit of this transaction as it will increase asset diversification, improve aggregate rent coverage and further enhance the benefit of cross-collateralization.”
About Gaming and Leisure Properties
GLPI is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties. GLPI expects to grow its portfolio by pursuing opportunities to acquire additional gaming facilities to lease to gaming operators. GLPI also intends to diversify its portfolio over time, including by acquiring properties outside the gaming industry to lease to third parties. GLPI elected to be taxed as a REIT for United States federal income tax purposes commencing with the 2014 taxable year and is the first gaming-focused REIT in North America.
