Century On line casinoNA’s main playing firm, has entered right into a definitive sale-leaseback settlement with. Properties of VICIs. The deal sees the previous firm promote 4 actual property belongings in Alberta, Canada.
The properties in query are Century On line casino & Resort Edmonton, Century On line casino St. Albert, Century Mile Racetrack & On line casino in Edmonton, Alberta, and Century Downs Racetrack & On line casino in Calgary, Alberta (“Century Downs”).
The overall buy value of the transaction is $164.4 million Denominated in USD (primarily based on change charge at time of transaction).Included in buy value $142.6 million Paid to a subsidiary of Century Casinos. $21.8 million Acquires a charge easy actual property curiosity in Century Downs.
Century On line casino anticipated to proceed $114.6 million of the acquisition value.
This deal is added to an current grasp lease
The 4 properties, dubbed the Century Canadian Portfolio underneath the deal, can be added to the prevailing TripleNet grasp lease settlement between Century On line casino and VICI Properties. This ends in an annual lease enhance of $12.8 million and an implied takeover charge of seven.8%.
Then again, the lease protection ratio for every property primarily based on the grasp lease settlement is round 2.0 occasions. Moreover, the time period of the grasp lease can be prolonged to fifteen years after the top of the present contract.
Century On line casino ensures its obligations underneath the Lease Settlement.
The transaction is predicted to shut within the second half of this 12 months, topic to regulatory approvals.
Higher administration is worked up in regards to the deal
Co-CEO of Century Casinos, Irwin Heitzman and peter hetzingerissued an announcement concerning the brand new sale-leaseback, saying it’s happy to increase its partnership with VICI Properties.
Two executives stated the deal would “unlock actual property worth” within the firm’s Canadian portfolio. On the similar time, the corporate will have the ability to broaden its footprint within the area whereas growing its monetary flexibility.
The co-CEOs introduced their intention to proceed to maximise Century On line casino’s capital and hinted at a few of their future plans.
We intend to make use of the proceeds from the sale to fund Nugget enhancements and for common company functions. We’re additionally contemplating the potential of utilizing a portion of the proceeds to repay obligations underneath the credit score settlement and returning funds to shareholders via inventory buybacks and particular dividends.
Century Casinos Co-CEOs Erwin Haitzmann and Peter Hoetzinger
Century On line casino is now sharing information on its monetary efficiency for 2022, highlighting double-digit progress.
