Twin River to acquire two Eldorado casinos for $155m

Twin River to acquire two Eldorado casinos for $155m

Twin River Worldwide Holdings, Inc. (Twin River) has entered into an agreement with Eldorado Resorts, Inc. (Eldorado) to acquire Eldorado Shreveport Resort and Casino (Shreveport) in Shreveport, Louisiana and the Mont Bleu Resort Casino & Spa (Mont Bleu) in Lake Tahoe, Nevada for $155 million.

Shreveport consists of approximately 1,400 slots, 54 tables, 403 hotel rooms and 6,000 sf of convention space. Mont Bleu features approximately 418 slots, 17 tables and 438 hotel rooms.

The Company is acquiring Shreveport’s operations and real estate and Mont Bleu’s operations. It has entered into an amended agreement with Mont Bleu’s landlord, including extension of the lease term to the end of 2035.

READ ALSO : Caesars, VICI to sell Bally’s Atlantic City for $25m

The purchase price for these two properties on a combined basis represents an implied trailing twelve-month proforma earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiple of approximately 4.1x, excluding any potential impact from cost and revenue synergies.

The Shreveport and Mont Bleu transaction is expected to close in the first half of 2021, subject to receipt of FTC and gaming regulatory approvals, financing and other customary closing conditions.

“These acquisitions represent a unique opportunity to continue executing on our expansion and diversification strategy at attractive valuation multiples,” commented George Papanier, President and Chief Executive Officer of Twin River. “We see significant opportunities to create cross marketing connections for customers at multiple Twin River locations, and we look forward to applying our proven operating and integration approach to drive incremental revenues and cash flows.”

“Despite the uncertainties presented by the current health crisis, we continue to execute our strategy to position Twin River for long-term growth and profitability,” Papanier added. “Completion of these transactions will meaningfully enhance our financial profile, while strengthening our presence in a number of key geographic markets.”

Citizens Capital Markets, Inc. and Jones Day were Twin River’s financial and legal advisors.