Penn National Gaming under the umbrella of its Real Estate Investment Trust (REIT), Gaming and Leisure Properties, Inc (GLPI), has announced plans to acquire Bally’s Casino Tunica and Resorts Casino Tunica in Robinsonville, Mississippi.
Penn National will assume operations of the casinos for $44 million in cash. That’s a multiple of 3.7 times the properties’ adjusted EBITDA for the past 12 months.
GLPI, the Penn National spin-off, will acquire the real estate assets for $82.6 million using a combination of debt and equity, and then lease the properties to Penn National.
Combined, the two sites possess 75,000 square footage of gaming space, 1,747 slot machines and 25 table games, along with six restaurants, 201 hotel rooms and 18,000 square feet of meeting space on the non-gaming side. The transaction is expected to close in the second quarter of 2017.
After approval, Penn National would now control five casinos in the state.