Bally’s talks $250 million three-year $50-par equity units to yield 6%-6.5%, up 17.5%-22.5%

By Abigail W. Adams

Portland, Me., April 13 – Bally’s Corp. plans to price $250 million of three-year par-of-$50 equity units after the market close on Thursday with price talk for a dividend of 6% to 6.5% and a threshold appreciation premium of 17.5% to 22.5%, according to a market source.

Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Barclays are joint bookrunners for the registered offering, which carries a greenshoe of $37.5 million.

The units consist of a stock purchase contract and an amortizing note due April 15, 2024.

Upon a fundamental change, the units may be settled early according to a fundamental change settlement rate. There is dividend protection.

Concurrently, the company plans to price a secondary offering of $600 million shares. The secondary offering carries a greenshoe of $90 million.

Proceeds will be used to pay the cash consideration of the combination of Bally’s and Gamesys Group plc. If the merger is not completed, proceeds will be used for general corporate purposes, which may include the repayment of debt, repurchase of common stock, redemption of the units, capital expenditures and acquisitions and investments.

Bally’s Corp. is a Providence, R.I.-based casino operator and gaming company.

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