Colorado Springs-based Century Casinos Inc. has agreed to acquire the operations of Mountaineer Casino, Racetrack and Resort in New Cumberland, W.V., along with two Missouri casinos for approximately $107 million from Eldorado Resorts Inc.
Mountaineer Casino, Racetrack and Resort, an hour from downtown Pittsburgh, is a hotel, casino, entertainment and live thoroughbred horse racing facility. The property features a 357-room hotel, approximately 1,486 slot machines, 36 table games, a poker room, a racetrack and five dining venues.
With the closing of the transaction, which is expected in early 2020, VICI Properties Inc. will acquire the real estate assets of the three properties for approximately $278 million, and Century Casinos will enter a triple net lease agreement with VICI.
The purchase price represents an implied trailing 12-month pro-forma EBITDA multiple of 4.1x for the three casinos. The multiple excludes any potential cost synergies and operational improvements.
Century Casinos intends to finance the purchase with a new credit facility from Macquarie Capital. On a pro-forma basis, the company estimates this will result in total leverage of 3.5x and net leverage of 2.2x, but it expects to quickly de-lever.
Upon closing, the company’s portfolio will increase to 10 casinos in North America that includes more than 6,700 gaming machines and 150 table games.
The transaction is subject to antitrust approval and approvals of the Missouri Gaming Commission and the West Virginia Lottery as well as other customary closing conditions.