Bally’s pulls $250 million three-year $50-par equity unit offering

By Abigail W. Adams

Portland, Me., April 15 – Bally’s Corp. pulled its planned offering of $250 million three-year par-of-$50 equity units, which were slated to price after the market close on Thursday.

The company canceled the offering with plans to instead pursue a private placement of equity-linked securities with a strategic investor, according to a company news release.

Bally’s initially planned to price $250 million 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 were joint bookrunners for the registered offering, which carries a greenshoe of $37.5 million.

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

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

The secondary offering will take place as planned.

Proceeds were to be used to pay the cash consideration of the combination of Bally’s and Gamesys Group plc.

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

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