Recently, Golden Entertainment Inc., the leading operator of a Las Vegas-based slot route, casino, and tavern, said it sold Rocky Gap Casino Resort in Maryland for about $260 million under customary equity adjustments.
Under the terms of the deal, Colorado’s Century Casino purchased the Rocky Gap business for about $56.1 million under customary operating capital adjustments, while New York-based VICI Property purchased stakes in buildings and land linked to the Rocky Gap for about $23.9 million. In addition, $175 million of the proceeds from the sale will be used to repay outstanding term loans.
During the transaction, Macquarie Capital acted as its exclusive financial advisor, while Ratham Ann Watkins and Duane Morris were legal advisors to Golden.
Key reasons for purchasing:
Century Casino acquired because the company could further expand its Rocky Gap, attracting more customers from nearby markets and entering the Maryland casino market. In a related development, Century said, “We have revised the Triple Net Master Lease Agreement with VICI to add Rocky Gap Properties. The amendment includes raising initial annual rent by about $15.5 million.” In addition, Century raised in the deal in connection with Peterson Harwin through purchase funds in this balance sheet and in a $30 million credit deal that lent $30 million in a revolving deal with Peterwin in connection with it
Rocky Gap is a good investment because it is located in Flintstone, Rocky Gap State Park, which attracts more than 500,000 visitors a year. The 270-acre site includes a 196-room hotel, conference space, event center, 18-hole golf course, and a spa designed by Jack Nicklaus. The casino also features 16 table games and 630 slot machines on 25,000 square feet, and has recently gone through a $10 million worth of remodeling sports and hotel lounges.
Post-Trade Company Status:
As for Century and Golden Entertainment, the former now has 19 casinos across the world with over 7,500 gaming machines and 268 table games, while the latter company now has eight casinos located in southern Nevada and 65 gaming taverns in Nevada. Also, through its distributed gaming businesses in Montana and Nevada, the company also operates video game devices in almost 1,000 locations. 슬롯머신