Hard Rock Casino Mississippi owner purchases Vicksburg’s Lady Luck Casino
A Mississippi river casino has been sold to a Rhode Island holding company that owns several other casino properties, including the Hard Rock Hotel & Casino in Biloxi.
Twin River Worldwide Holdings, Inc. (NYSE: TRWH) announced Thursday that it has entered into an agreement to acquire the operations and real estate of Lady Luck Casino Vicksburg in Vicksburg, Mississippi and Isle of Capri Casino Kansas City in Kansas City, Missouri from Eldorado Resorts, Inc. (NASDAQ: ERI), in a cash transaction for $230 million, subject to certain customary post-closing adjustments.
Twin River Worldwide Holdings, Inc., or TRWH, owns and manages four casinos; two casinos in Rhode Island, one in Mississippi, and one in Delaware, as well as a Colorado horse race track that has 13 authorized OTB licenses.
Properties include Twin River Casino Hotel (Lincoln, RI), Tiverton Casino Hotel (Tiverton, RI), Hard Rock Hotel & Casino (Biloxi, MS), Dover Downs Hotel & Casino (Dover, DE) and Arapahoe Park racetrack (Aurora, CO). Its casinos range in size from 1,000 slots and 32 table games facilities to properties with over 4,100 slots, approximately 125 table games, and 48 stadium gaming positions, along with hotel and resort amenities. Its shares are traded on the New York Stock Exchange under the ticker symbol “TRWH.”
The purchase price represents an implied trailing twelve month proforma earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiple of approximately 8.4x for the properties on a combined basis. The multiple excludes the impact of any potential cost synergies or possible revenue enhancement opportunities from operational improvements and anticipated capital investment. The acquisition is expected to be immediately accretive to earnings. The Company expects to finance the purchase price with available cash.
“This transaction continues our focus on creating long-term shareholder value as we strive to develop or acquire assets which we believe will prove accretive to our earnings,” George Papanier, President and CEO of TRWH commented. “Isle Kansas City and Lady Luck Vicksburg expand our geographic footprint with assets in attractive markets. We believe these assets are a great fit for our portfolio and see the opportunity to increase the net cash flow from these properties by our redevelopment and operating plans. In particular, in Kansas City, where the property lies within an area near downtown that has been targeted by local officials for development, we feel there is opportunity for capital investment in the property which we believe will have a transformative impact and integrate well with local development efforts in the area.”
Isle of Capri Casino Kansas City is located in Kansas City, Missouri overlooking the Missouri River in close proximity to downtown Kansas City and the Berkeley Riverfront. The property consists of approximately 40 thousand square feet of casino space, 939 gaming machines, 13 table games and two dining venues. It is located at a premier location on the riverfront near downtown and is readily accessible to suburban traffic. The Company expects to substantially reposition the casino and a rendering of one potential redevelopment plan has been included in this release for illustrative purposes.
Lady Luck Casino Vicksburg is located along the Mississippi River in Vicksburg, Mississippi. The property features approximately 25 thousand square feet of casino space, 603 slot machines, eight electronic table games, three dining venues and an 89 room hotel.
The transaction is subject to receipt of required regulatory approvals and other customary closing conditions including compliance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and is expected to close in early 2020.
For additional illustrative renderings with potential redevelopment images please visit www.twinriverwwholdings.com/kansascityrenovations/
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