Century Casinos plans $180 million credit facilities for acquisition

By Sara Rosenberg

New York, June 17 – Century Casinos Inc. has received a commitment for $180 million of senior secured credit facilities to fund its purchase of the operations of Isle Casino Cape Girardeau, Lady Luck Caruthersville and Mountaineer Casino, Racetrack and Resort from Eldorado Resorts Inc. for about $107 million, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Macquarie Capital is the lead on the debt.

The facilities consist of a $10 million five-year revolver and a $170 million seven-year term loan.

On a pro-forma basis, Century Casinos estimates total leverage of 3.5x and net leverage of 2.2x; however, deleveraging is expected to happen quickly given the growth across the company’s existing portfolio, newly acquired properties and the ramp up of Century Mile Racetrack and Casino.

Closing is anticipated in early 2020, subject to antitrust approval and approvals of the Missouri Gaming Commission and the West Virginia Lottery as well as other customary conditions.

Simultaneous with the closing of the transaction, VICI Properties Inc. will acquire the real estate assets of the three properties for about $278 million and Century Casinos will enter into a triple net lease agreement with VICI for the three casino properties. The lease will have an initial annual rent of around $25 million and an initial term of 15 years, with four five-year renewal options.

Century Casinos is a Colorado Springs, Colo.-based international casino entertainment company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.