Gaming and Leisure Properties acquires land in Rockford for $100M

Gaming and Leisure Properties announced that it has acquired the land associated with the Hard Rock Casino development project in Rockford, IL from an affiliate of 815 Entertainment, for $100.0M. Simultaneous with the land acquisition, GLPI entered into a ground lease with 815 Entertainment for a 99-year term. The initial annual rent for the ground lease is $8.0M, subject to fixed 2.0% annual escalation beginning with the lease’s first anniversary and for the entirety of its term. In addition to the ground lease, GLPI has also committed to providing up to $150.0M of development funding via a senior secured delayed draw term loan, subject to regulatory review. Any borrowings under the senior secured delayed draw term loan will be subject to an interest rate of 10.0%. The term loan has a draw period of up to 1-year and a maximum outstanding period of up to 6 years. The term loan is prepayable without penalty following the opening of the Hard Rock Casino in Rockford, IL, which is expected in September 2024. The term loan advances will be subject to typical construction lending terms and conditions. In conjunction with the foregoing transactions, GLPI will receive a right of first refusal on the building improvements of the Hard Rock Casino in Rockford, IL if there is a future decision to sell them once completed. CBRE Securities acted as financial advisor to Gaming and Leisure Properties. SMBC Nikko Securities America and Jefferies served as the exclusive financial advisors to 815 Entertainment.