RENO, Nev.–(BUSINESS WIRE)–Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado” or the “Company”)
announced today that it entered into definitive agreements to sell
Mountaineer Casino Racetrack and Resort in New Cumberland, WV; Isle
Casino Cape Girardeau in Cape Girardeau, MO; and Lady Luck Casino
Caruthersville in Caruthersville, MO, for aggregate consideration of
$385 million in cash. Pursuant to the terms of the agreements, Century
Casinos, Inc. (NASDAQ: CNTY) will acquire the operating assets of the
three properties for approximately $107 million, subject to a customary
working capital adjustment, and VICI Properties Inc. (NYSE: VICI) will
acquire the land and real estate assets of the three properties for
approximately $278 million.
The transactions are subject to regulatory approvals and other customary
closing conditions and are expected to close in early 2020.
Tom Reeg, Chief Executive Officer of Eldorado, commented, “The
agreements to divest Mountaineer Casino, Isle Casino Cape Girardeau and
Lady Luck Casino Caruthersville are consistent with our continued focus
on optimizing the results from our regional gaming platform, generating
growth through strategic acquisitions and realizing value through sales.
The sale price for these three properties represents an attractive
multiple of their aggregate trailing twelve months cash flows and
provides additional capital that we expect to deploy for shareholder
value enhancing initiatives. Following the completion of these
transactions, Eldorado will continue to benefit from our geographically
diverse portfolio of regional gaming assets that we believe have
potential for further margin growth and increased cash flow.”
Macquarie Capital is acting as exclusive financial advisor and Milbank
LLP is acting as legal counsel to Eldorado in connection with the
proposed transactions.
About Eldorado Resorts, Inc.
Eldorado Resorts is a leading casino entertainment company that owns and
operates twenty-six properties in twelve states, including Colorado,
Florida, Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri,
Nevada, New Jersey, Ohio and West Virginia. In aggregate, Eldorado’s
properties feature approximately 28,000 slot machines and VLTs and
approximately 750 table games, and over 12,500 hotel rooms. For more
information, please visit www.eldoradoresorts.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include statements regarding our strategies,
objectives and plans for future development or acquisitions of
properties or operations, as well as expectations, future operating
results and other information that is not historical information. When
used in this press release, the terms or phrases such as “anticipates,”
“believes,” “projects,” “plans,” “intends,” “expects,” “might,” “may,”
“estimates,” “could,” “should,” “would,” “will likely continue,” and
variations of such words or similar expressions are intended to identify
forward-looking statements. Although our expectations, beliefs and
projections are expressed in good faith and with what we believe is a
reasonable basis, there can be no assurance that these expectations,
beliefs and projections will be realized. There are a number of risks
and uncertainties that could cause our actual results to differ
materially from those expressed in the forward-looking statements which
are included elsewhere in this press release. Such risks, uncertainties
and other important factors include, but are not limited to: (a) the
timing to consummate the proposed sales; (b) the ability and timing to
obtain required regulatory approvals (including approval from gaming
regulators and expiration of the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976) and satisfy or
waive other closing conditions to consummate the transaction on a timely
basis; (c) the possibility that the proposed sales do not close on the
terms described herein, or at all; (d) our ability to identify and
execute additional shareholder value enhancing initiatives; and (e)
other risks and uncertainties described in our reports on Form 10-K,
Form 10-Q and Form 8-K.
In light of these and other risks, uncertainties and assumptions, the
forward-looking events discussed in this press release might not occur.
These forward-looking statements speak only as of the date of this press
release, even if subsequently made available on our website or
otherwise, and we do not intend to update publicly any forward-looking
statement to reflect events or circumstances that occur after the date
on which the statement is made, except as may be required by law.
Contacts
Thomas Reeg
Chief Executive Officer
Eldorado Resorts, Inc.
775/328-0112
[email protected]
Joseph N. Jaffoni, James Leahy
JCIR
212/835-8500
[email protected]
