Bally’s Corporation has announced the completion of the previously disclosed sale-leaseback transaction involving the real property interests underlying Bally’s Kansas City and Bally’s Shreveport. The deal, valued at $395 million in total, includes $7 million in LP units and $388 million in cash. The transaction also covers approximately $56 million in reimbursement for prior capital expenditures at the properties, with the remainder serving as gross sale proceeds.
The proceeds from this sale-leaseback will be used by Bally’s to reduce its outstanding balances on its $620 million revolving credit facility, of which $350 million was drawn as of September 30, 2024. The remaining funds will be allocated for capital expenditures and general corporate purposes.
As part of the transaction, the leases for both Bally’s Kansas City and Bally’s Shreveport have been incorporated into a new Master Lease Agreement (MLA#2), which is cross-defaulted with Bally’s existing Master Lease with Gaming and Leisure Properties, Inc. (GLPI). The initial cash rent for MLA#2 is set at $32.2 million annually, with customary annual escalators included.
Marcus Glover, Executive Vice President and Chief Financial Officer of Bally’s, commented, “We are pleased to complete this transaction as it further solidifies Bally’s financial position and enhances Bally’s strong strategic partnership with GLPI. The proceeds from the monetization of the real estate underlying our Kansas City and Shreveport properties provide us with additional liquidity and flexibility to deploy capital towards our permanent casino project in Chicago and other exciting growth opportunities.”
