On a pro-forma basis, the company expects to generate 94% of its Adjusted EBITDA from its North American casinos. Upon closing of the Nugget acquisition, the company’s North American portfolio will increase to 10 casinos that include 6,700 gaming machines and 140 table games. The acquisition of the Nugget is expected to “meaningfully enhance the company’s free cash flow as well as be immediately accretive to earnings”, the company stated in an official press release. The company will also have a five-year option to purchase the remaining 50% of Smooth for $105 million, plus 2% per annum.įollowing required approvals from the Nevada Gaming Commission, the company will purchase 100% of Nugget Sparks for $100 million, which represents and implied earnings before interests, taxes, depreciation and amortization, as adjusted EBITDA before pro forma rent expense. Smooth owns the land and building underlying the Nugget, and will enter into a lease of the property to Nugget Sparks (doing business as Nugget Casino Resort) for an annual rent of $15 million. The Colorado-based operator will purchase a 50% interest in Smooth Bourbon for $95 million, which represents a capitalization rate of 7.9% based on preliminary 2021 numbers. This will become its tenth casino in North America. Century Casinos announced Wednesday it has entered into a definitive agreement to acquire Nugget Casino Resort in Sparks, near Reno in Nevada, from Marnell Gaming for a total of $195 million.
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