Colorado Springs-based Century Casinos Inc. has completed the acquisition of the operations of New Cumberland, West Virginia’s Mountaineer Casino, Racetrack and Resort, as well as two Missouri casinos, from Eldorado Resorts Inc. for approximately $107 million. The strategic deal that expands Century Casinos into Missouri and West Virginia was previously announced in June.
Simultaneous with the closing, VICI Properties Inc. acquired the real estate assets of the three casino properties, and Century Casinos entered a triple net lease agreement for such real estate with VICI. The lease has an initial annual rent of approximately $25 million and an initial term of 15 years, with four five-year renewal options.
The company financed the acquisition with a new credit facility that was issued by Macquarie Capital on the closing date. The credit facility also refinanced the company’s existing debt.
Mountaineer is a hotel, casino, entertainment and live thoroughbred horse racing facility located one hour from downtown Pittsburgh. The property originally opened in 1951 with the casino opening in 1994 and features a 357-room hotel, approximately 1,486 slot machines, 36 table games, a poker room, a racetrack and five dining venues.
Isle Casino Cape Girardeau is located in Cape Girardeau, Missouri, approximately 120 miles south of St. Louis, Missouri, It consists of a dockside casino with 863 gaming machines, 20 table games, three dining venues, a pavilion and an entertainment center. The property also includes a wide variety of non-gaming amenities, including an events center.
Lady Luck Caruthersville is a riverboat casino located along the Mississippi river in Caruthersville, Missouri. The property consists of a dockside casino with 507 slot machines, nine table games, two dining venues, a pavilion and a RV park.
With this transaction, Century Casinos’ portfolio increased to 18 casinos world-wide that include over 7,185 gaming machines, 285 table games and 3,400 employees. On a pro-forma basis, if the acquisition occurred on Oct. 1, 2018, the company’s last 12 months net operating revenue and Adjusted EBITDA with the acquired properties were $414.7 million and $56.6 million, respectively. On a pro-forma basis, using its debt as of Sept. 30, 2019, with the new credit facility, the company’s long-term debt and net debt after the acquisition are $183.9 million and $133million, respectively.
Stifel acted as exclusive financial advisor and Faegre Baker Daniels LLP acted as legal counsel to Century Casinos in connection with the acquisition.