Gaming &Leisure To Buy Real Estate Assets Of Bally'Casino Tunica &Resorts Casino

(RTTNews) - Gaming and Leisure Properties Inc. (GLPI) said that it agreed to acquire the real estate assets of Bally's Casino Tunica and Resorts Casino Tunica located in Robinsonville, Mississippi for $82.6 million.

The two properties combined include 75,000 casino square feet, 1,747 slot machines and 25 table games. In addition to the casinos, the properties include six restaurants, 201 hotel rooms and 18,000 square feet of meeting space. The properties will be operated by Penn National Gaming Inc. (PENN) and will be added to the existing master lease with Penn.

Initial rent of $9.0 million, which equates to 2.3 times rent coverage on combined property adjusted EBITDA for the twelve months ended December 31, 2016, is subject to escalators and adjustments consistent with the other master lease properties.

The transaction, which is expected to be immediately accretive, is subject to regulatory approval and is expected to close in the second quarter of 2017. The transaction is expected to be funded with a combination of debt and equity, within the Company's existing Revolving Credit Facility and ATM program.