Eldorado To Acquire Operating Assets Of Tropicana Entertainment

Eldorado To Acquire Operating Assets Of Tropicana Entertainment

Gaming and Leisure Properties, a company that owns 37 casinos in the US, will add to its portfolio by acquiring almost all of Tropicana Entertainment's real estate, except the MontBleu and the Tropicana Aruba, for $1.21 billion. "By hiring a great CEO in Tony Rodio and a great management team, and by reinvesting every single penny of profits back into the company, we turned Tropicana into a great casino company".

Icahn Enterprises initially bought a stake in Tropicana in 2008.

Eldorado intends to fund the transaction consideration of approximately $640 million payable by Eldorado and repay debt outstanding under Tropicana's credit facility with cash generated from its current operations, proceeds from pending asset sales, Tropicana's cash on hand, cash flow generated from Tropicana operations through closing and $600 million of committed debt financing from J.P. Morgan.

The transaction is expected to close in the second half of 2018, subject to receipt of required gamin approvals, termination of the waiting period under the Hart-Scott-Rodino Anitrust Improvements Act of 1976.

Two other casinos under the Tropicana brand, the MontBleu Casino Resort & Spa in South Lake Tahoe and the Tropicana Aruba Resort and Casino, will be sold separately at Eldorado's request.

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This is a developing story. (GLPI) announced a definitive agreement to acquire the real estate assets of six casino properties from Tropicana Entertainment. It said the Aruba property was not included in the sale because Eldorado does not believe it would be worth acquiring.

Icahn acquired Tropicana Entertainment in 2010, two years after Tropicana fell into bankruptcy. Overall, the Tropicana portfolio is in good shape and we have no immediate significant capex plans for the properties.

Gaming and Leisure Properties said, upon completion of the deal, along with the previously announced transactions related to the acquisition of Pinnacle Entertainment, Inc.

Eldorado estimates its expanded portfolio after the deal will include almost 27,000 slot machines and video lottery terminals, 800 table games, and 12,500 hotel rooms.

Atlantic City, UNITED STATES: The Tropicana Casino and Resort in Atlantic City in Atlantic City, New Jersey, is pictured 24 May 2007, next to derelict streets.

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