Not too long ago, Golden Leisure Inc., a flagship operator of slot routes, casinos and taverns based mostly in Las Vegas, revealed that it has finalized the previously talked about sale of Rocky Hole On line casino Resort in Maryland for a complete money consideration of roughly $260 million, topic to customary fairness capital changes.
Buy agreements:
Beneath the phrases of the agreements, Century Casinos, Inc. of Colorado bought the Rocky Hole enterprise for roughly $56.1 million, topic to customary working capital changes, and New York-based VICI Properties Inc. bought a stake within the buildings and land related with Rocky Hole for roughly $203.9 million. Moreover, $175 million of the income from the sale might be used to repay excellent time period loans.
In the course of the transaction course of, Macquarie Capital took the function of unique monetary advisor, and Latham & Watkins and Duane Morris had been Golden’s authorized advisors.
Major causes for the purchases:
The buy by Century Casinos was as a result of the corporate will now have the chance to additional prolong Rocky Hole to draw extra prospects from neighboring markets and enter the Maryland on line casino market. On a associated be aware, Century mentioned: “We’ve amended our triple-net master-lease settlement with VICI so as to add the Rocky Hole property. The modification consists of a rise in preliminary annualized hire of about $15.5 million.” As well as, Century funded the acquisition with money from its steadiness sheet and $30 million loaned from a revolving credit score cope with Goldman Sachs. On this regard, in an announcement, Erwin Haitzmann and Peter Hoetzinger, co-CEOs of Century Casinos, mentioned: “Rocky Hole is a good addition to our portfolio for increasing into Maryland.”
Rocky Hole is a good funding as a result of it’s positioned in Flintstone at Rocky Hole State Park, which lures over half one million guests yearly. It covers 270 acres and entails a 196-room lodge, assembly areas, an occasion middle, an 18-hole golf course and a spa designed by Jack Nicklaus. Additionally, the on line casino is 25,000 sq. ft with 16 desk video games and 630 slot machines. What’s extra, Rocky Hole lately underwent a re-modelling course of, value $10 million, of the lodge, eating places, slot machines and sports activities lounge.
State of the businesses after the transaction:
As for Century and Golden Leisure, the previous now has 19 casinos the world over with over 7,500 gaming machines and 268 desk video games, whereas the latter firm now has eight casinos positioned in southern Nevada and 65 gaming taverns in Nevada. Additionally, by way of its distributed gaming companies in Montana and Nevada, the corporate additionally operates online game units in virtually 1,000 areas.
