Gaming and Leisure Properties completes sale leaseback transaction with Bally’s

Gaming and Leisure Properties (GLPI) completed the previously announced acquisition from Bally’s Corporation (BALY) of 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 $635M in total consideration, inclusive of $15M in the form of OP units. These properties were added to the Company’s existing Master Lease with Bally’s. The initial rent for the lease was increased by $48.5M on an annual basis, subject to contractual escalations based on the Consumer Price Index, with a 1% floor and 2% ceiling, subject to CPI meeting a 0.5% threshold. The Master Lease has an initial term of 15 years followed by four five-year renewals at the tenant’s option. Normalized rent coverage on the Master Lease – which includes Bally’s Dover Casino Resort, Bally’s Evansville Casino & Hotel, Bally’s Quad Cities Casino & Hotel and Bally’s Black Hawk Casinos – is expected to be 2.0x in the first calendar year following closing. In connection with the closing, a $200M deposit funded by GLPI in September 2022 was credited to the Company along with a $9M transaction fee. Concurrent with the transaction’s closing, GLPI will draw upon its previously structured delayed draw term loan for $600M to credit towards the closing. The amount of draw was influenced by the transaction’s tax structuring for Bally’s benefit. GLPI continues to have the option, subject to receipt by Bally’s of required consents, to acquire the real property assets of Bally’s Twin River Lincoln Casino Resort in Lincoln, RI prior to December 31, 2024 for a purchase price of $771M and additional rent of $58.8M.