Gaming and Leisure Properties, Inc. announces completion of acquisitions
Gaming and Leisure Properties, Inc. recently announced that the company completed the previously announced property acquisitions and lease modifications with Penn National Gaming, Inc. (Penn), Pinnacle Entertainment, Inc. (Pinnacle) and Boyd Gaming Corporation (Boyd) in order to accommodate the acquisition of Pinnacle by Penn, which was completed and separately announced by Penn.
The company has amended the Master Lease with Pinnacle to allow for the sale of the operating assets of Ameristar Casino Hotel Kansas City, Ameristar Casino Resort Spa St. Charles and Belterra Casino Resort. Boyd has acquired these operating assets and has entered into a new Master Lease with the company. Terms of the new Boyd Master Lease are similar to the company’s existing leases with rent initially set at approximately $97.2 million annually. Rent at the remaining properties in the Pinnacle Master Lease has initially been set at approximately $290.3 million annually.
The company has acquired the real property assets at Plainridge Park Casino for $250 million from Penn. Plainridge Park has been added to the Pinnacle Master Lease with annual rent of $25.0 million, which will not be subject to any escalators or revenue reset adjustments. Additionally, Boyd has acquired Belterra Park in Cincinnati, Ohio from Pinnacle. The company provided a $57.7 million mortgage loan to Boyd to finance its acquisition of the real estate assets of Belterra Park, with initial annual interest payments of $6.4 million.
The Master Lease with Pinnacle has been amended to include an additional $13.9 million of annual fixed rent. This rent will not be subject to adjustment and will be excluded from the calculation of the escalator in the existing master lease. Penn in now the tenant under the amended Pinnacle Master Lease and also under the existing Meadows Casino lease.
“The successful completion of this transaction demonstrates our ability to create value for our shareholders through complex and unique structures,” said CEO, Peter M. Carlino. “Additionally, it shows our readiness to partner with our tenants to help them grow and achieve their own strategic goals. Through this transaction, we have added an economic interest in two additional high quality regional gaming facilities, increasing our annual real estate income by $45.3 million. In Boyd, we have added a new tenant that is highly regarded in the gaming space and is an active consolidator of casino assets and operations.”