Gaming and Leisure Properties, Inc. Announces Completion of Acquisitions and Lease Modifications to Accommodate the Acquisiti...
15 Outubro 2018 - 9:36AM
Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) today announced
that the Company completed the previously announced property
acquisitions and lease modifications with Penn National Gaming,
Inc. (NASDAQ:PENN) ("Penn"), Pinnacle Entertainment, Inc.
(NASDAQ:PNK) ("Pinnacle") and Boyd Gaming Corporation (NYSE:BYD)
("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 transaction was funded with borrowing under
the Company’s existing revolving credit facility. Pro Forma
for the transaction and the previously announced acquisition of the
assets of Tropicana Entertainment, the Company’s ratio of Total Net
Debt to Adjusted EBITDA is approximately 5.7. The company
intends to reduce leverage below its stated target of 5.5 within
one year.
Additionally, On October 12, 2018, the
Company declared its fourth quarter 2018 dividend of $0.68 per
common share, payable on December 28, 2018 to shareholders of
record on December 14, 2018. The company anticipates
2019 annual dividends of approximately $2.72 to $2.76 per
share.
Chief Executive Officer, Peter M. Carlino,
commented “The successful completion of this transaction
demonstrates our ability to create value for our shareholders
through complex and unique structures. 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. Further, in
announcing our 2019 dividend guidance, we are pleased to
demonstrate our commitment to accretive growth and increasing
returns to shareholders.”
About Gaming and Leisure
Properties
GLPI is engaged in the business of acquiring,
financing, and owning real estate property to be leased to gaming
operators in triple-net lease arrangements, pursuant to which the
tenant is responsible for all facility maintenance, insurance
required in connection with the leased properties and the business
conducted on the leased properties, taxes levied on or with respect
to the leased properties and all utilities and other services
necessary or appropriate for the leased properties and the business
conducted on the leased properties. GLPI elected to be taxed as a
real estate investment trust (“REIT”) for United States federal
income tax purposes commencing with the 2014 taxable year and is
the first gaming-focused REIT.
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934, as
amended, including our relationship with Penn and Boyd, the
expected benefits of the transactions with Penn and Boyd, the
expected benefits of our recently closed transaction with Tropicana
Entertainment, Inc. and Eldorado Resorts, Inc. and our expectations
of future growth and dividend payments. Forward-looking statements
can be identified by the use of forward-looking terminology such as
“expects,” “believes,” “estimates,” “intends,” “may,” “will,”
“should” or “anticipates” or the negative or other variation of
these or similar words, or by discussions of future events,
strategies or risks and uncertainties. Such forward-looking
statements are inherently subject to risks, uncertainties and
assumptions about GLPI and its subsidiaries, including risks
related to the following: GLPI’s ability to realize the expected
benefits of the transactions; adverse changes in general economic
conditions in the regions or the industries in which GLPI, Penn and
Boyd operate, or general disruptions in the financial, debt,
capital, credit or securities markets; GLPI’s ability to maintain
its status as a REIT; the availability of and the ability to
identify suitable and attractive acquisition and development
opportunities and the ability to acquire and lease those properties
on favorable terms; GLPI’s ability to access capital through debt
and equity markets in amounts and at rates and costs acceptable to
GLPI; changes in the U.S. tax law and other state, federal or local
laws, whether or not specific to REITs or to the gaming or lodging
industries; and other factors described in GLPI’s Annual Report on
Form 10-K for the year ended December 31, 2017, Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K, each as filed with
the Securities and Exchange Commission. All subsequent
written and oral forward-looking statements attributable to GLPI or
persons acting on GLPI's behalf are expressly qualified in their
entirety by the cautionary statements included in this press
release. GLPI undertakes no obligation to publicly update or revise
any forward-looking statements contained or incorporated by
reference herein, whether as a result of new information, future
events or otherwise, except as required by law. In light of these
risks, uncertainties and assumptions, the forward-looking events
discussed in this press release may not occur.
Contact – Investor
Relations
Hayes CroushoreT: 610-378-8396Email:
Hcroushore@glpropinc.com
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