By Chris Wack
Century Casinos Inc. shares were up 13% to $11.87 Wednesday right after the corporation said it was shopping for 50% of Easy Bourbon LLC, the home business, and 100% of Nugget Sparks LLC, or OpCo, from Marnell Gaming LLC for $195 million.
The gaming business will also have a five-12 months choice to buy the remaining 50% of PropCo for $105 million furthermore 2% per annum.
Century Casinos reported it will order its 50% fascination in PropCo for $95 million. PropCo owns the land and setting up fundamental the Nugget and will enter into a lease of the home to OpCo for an once-a-year hire of $15 million.
Adhering to necessary approvals from the Nevada Gaming Commission, the enterprise will buy 100% of OpCo for $100 million. The acquisition of Nugget is expected to meaningfully greatly enhance the firm’s cost-free funds movement as nicely as be straight away accretive to earnings.
In link with the acquisition, Goldman Sachs Bank United states of america has provided a commitment letter for $350 million in senior secured term loan funding to support the acquisition, refinance Century Casinos’ current financial debt and for standard company reasons and a $30 million senior secured revolving credit rating facility.
The PropCo transaction and the financing are anticipated to close early in the second quarter of 2022, Century Casinos reported. The OpCo acquisition is anticipated to near inside of just one 12 months following the PropCo transaction, subject to expected approvals of the Nevada Gaming Fee.
Write to Chris Wack at [email protected]