Twin River Worldwide Agrees to Acquire Two Casinos from Eldorado Resorts for $230M
LINCOLN, R.I. — Twin River Worldwide Holdings Inc. (NYSE: TRWH) has entered into an agreement to acquire Isle of Capri Casino Kansas City in Missouri and Lady Luck Casino Vicksburg in Mississippi for $230 million. Eldorado Resorts Inc. (Nasdaq: ERI) is the seller.
Isle of Capri is located near downtown Kansas City, overlooking the Missouri River. The property offers 40,000 square feet of casino space, 939 gaming machines, 13 table games and two dining venues.
Lady Luck Casino Vicksburg is situated along the Mississippi River. The property features 25,000 square feet of casino space, 603 slot machines, eight electronic table games, three dining venues and an 89-room hotel.
“Isle Kansas City and Lady Luck Vicksburg expand our geographic footprint with assets in attractive markets,” says George Papanier, president and CEO of Lincoln, R.I.-based TRWH. “We believe these assets are a great fit for our portfolio and see the opportunity to increase the net cash flow from these properties by our redevelopment and operating plans.”
Eldorado Resorts expects to use the proceeds from the sale for general corporate purposes, including its proposed $17.3 billion acquisition of Caesars Entertainment Corp.
Papanier says TRWH will redevelop Isle of Capri, though he did not provide project details or a timeline.
“Isle of Capri lies within an area near downtown that has been targeted by local officials for development,” says Papanier. “We feel there is opportunity for capital investment in the property which we believe will have a transformative impact and integrate well with local development efforts in the area.”
The sale is expected to close in early 2020. TRWH will pay for the properties in available cash.
Isle of Capri and Lady Luck add to TRWH’s portfolio consisting of four casinos and a horse track. The horse track is located in Aurora, Colo. The four casinos are located in Biloxi, Miss.; Lincoln, R.I.; Tiverton, R.I.; and Dover, Del.
TRWH’s stock price closed Wednesday at $28.76 per share, down from $29.95 per share March 29 when it began trading on the New York Stock Exchange. Eldorado Resorts’ stock price closed at $47.35 per share Wednesday, up from $43.80 per share one year ago.
— Alex Tostado