Bally’s Corporation today announced that it has completed a real estate transaction with Gaming & Leisure Properties, Inc., in which the two firms sold and leased back the land and real estate assets of Bally’s Tiverton Casino & Hotel in Tiverton, Rhode Island, and Bally’s Hard Rock Hotel & Casino Biloxi in Biloxi, Mississippi.
According to a press release from Bally’s, the deal was worth a total of $635 million and was structured as a tax-free capital contribution.
A significant portion of the proceeds will be used to reduce Bally’s debt. The two properties have been added to Bally’s Master Lease with GLPI, which now includes six properties.
The rent for the Master Lease has also been increased by $48.5 million per year as a result of the transaction. Bobby Lavan, Chief Financial Officer of Bally’s, stated that the deal is an important step for the company, as it will ensure that Bally’s is well-positioned for future growth.
Full Press Release
BALLY’S COMPLETES PREVIOUSLY ANNOUNCED SALE LEASEBACK TRANSACTION WITH GLPI REGARDING TIVERTON AND BILOXI PROPERTIES
Bally’s Corporation (NYSE: BALY) today announced the completion of its previously announced real estate transaction with the operating partnership of Gaming & Leisure Properties, Inc. (“GLPI”). Bally’s and GLPI completed a sale leaseback transaction relating to the land and real estate assets of Bally’s Tiverton Casino & Hotel in Tiverton, RI, and Bally’s Hard Rock Hotel & Casino Biloxi in Biloxi, MS, for total consideration of $635 million.
The transaction was structured as a tax-free capital contribution, and a substantial portion of the proceeds will be applied to reduce Bally’s debt. These properties have been added to Bally’s Master Lease with GLPI, which now includes six properties. The rent for the Master Lease was increased by $48.5 million on an annual basis on account of the transaction.
Bobby Lavan, Chief Financial Officer of Bally’s, said, “We are pleased to have completed another transaction with GLPI. This marks an important step for us, ensuring Bally’s is best positioned for continued growth.”
About Bally’s Corporation
Bally’s Corporation is a global casino-entertainment company with a growing omni-channel presence of Online Sports Betting and iGaming offerings. It currently owns and manages 15 casinos across 10 states, a horse racetrack in Colorado and has access to OSB licenses in 18 states. It also owns Bally’s Interactive International, formerly Gamesys Group, a leading, global, online gaming operator, Bally Bet, a first-in-class sports betting platform and Bally Casino, a growing iCasino platform.
With 10,500 employees, Bally’s casino operations include approximately 15,000 slot machines, 600 table games and 5,300 hotel rooms. Upon completing the construction of a temporary casino facility in Chicago, IL and a land-based casino near the Nittany Mall in State College, PA, Bally’s will own and manage 17 casinos across 11 states. Its shares trade on the New York Stock Exchange under the ticker symbol “BALY”.