Century Casino Acquires Nevada Nugget Casino Resort

 Century Casino announced it has entered into a definitive agreement to acquire 50% of Smooth Bourbon, LLC and 100% of Nugget Sparks, LLC for $195 million from Marnell Gaming. The company will also have the option to purchase the remaining 50% of PropCo for an additional 2% per annum for $105 million over a five-year period.

The Company will purchase a 50% stake in Propco for $95 million, representing a market capitalization of 7.9% based on preliminary 2021 figures. Propco owns the land and buildings on which the Nuggets are based, and will enter into a real estate lease with Opco at a rent of $15 million per year. Under the required approval of the Nevada Gaming Commission, the Company will purchase 100% of Opco for $100 million, representing an inherent return before interest, taxes, depreciation, and amortization, before offering rent costs, which is 5.6 times as of preliminary 2021 figures. Estimated multiples exclude potential cost synergies and operational improvements. The Opco acquisition is expected to not only meaningfully enhance the Company's free cash flow but also generate immediate revenue.

In connection with the acquisition, Goldman Sachs Bank USA has provided a commitment for $350 million in senior secured term loan financing and $30 million in senior secured revolving credit facilities to refinance existing debt at Century Casino and raise funds for general corporate purposes. On an official basis, the Company expects net leverage to be approximately 3.0 times larger at the time of the OpCo acquisition.

“We have been looking at entering the Reno market for a long time, and we believe the Nugget is a perfect fit for our portfolio. We look forward to welcoming the great team at the Nugget to Century Casinos,” Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos remarked. “We believe there is a lot of upside to this transaction and that we identified some areas of improvement to continue the Nugget’s growth. We expect the Nugget to seamlessly integrate and provide added synergies for Century Casinos’ US portfolio,” they concluded.

Nugget Casino Resort is located in Sparks, Nevada, conveniently located on Interstate 80 with easy access from Reno-Tahoe International Airport (approximately three miles). The full-service resort includes a large gaming floor, two hotel towers, 110,000 square feet of convention space, a 8,555 seat outdoor amphitheater, a wide variety of casual and fine dining options in addition to several on-site bars and lounges, and a 5-story 1,200 space parking garage and additional 1,272 parking spaces. The property consists of 50,200 square feet of casino space, 859 slot machines, 29 table games, 1,382 hotel rooms and seven dining venues. The Nugget Casino Resort had net operating revenue of $100.4 million and Adjusted EBITDA* of $32.8 million based on preliminary results for the year ended December 31, 2021.

The Reno-Sparks area is famous for its casinos but is also known as a destination for outdoor recreation with proximity to Lake Tahoe and several ski resorts. It has attracted leading technology and manufacturing companies including Google, Tesla, Switch, Amazon and Apple. The economy is diversifying into a broader base that spans healthcare, entrepreneurial startups and technology-based industries, and the area currently has an unemployment rate below 3%.

Upon closing of the OpCo acquisition, the Company’s North American portfolio will increase to 10 casinos that include 6,700 gaming machines and 140 table games. On a pro-forma basis, the Company expects to generate 94% of its Adjusted EBITDA* from its North American casinos.

The PropCo transaction and the financing are expected to close early in the second quarter of 2022. The OpCo acquisition is expected to close within one year after the PropCo transaction, subject to required approvals of the Nevada Gaming Commission. Closing of both transactions is subject to customary closing conditions. 슬롯사이트 순위

Goldman Sachs & Co. LLC served as sole financial advisor to Century Casinos in connection with the acquisition.