Century Entertainment Acquires Half-Interest in Nugget Casino Resort
Century Entertainment has finalized the previously announced purchase of a half-interest in Smooth Bourbon (PropCo), the proprietor of the Nugget Casino Resort in Nevada.
Century Entertainment obtained the 50% interest in the property and operating company from Marnell Gaming for $95 million (roughly £72.4 million/€86 million). While the acquisition of the 50% stake in the property has been completed, the operational transaction will take a longer period.
PropCo owns the land and building of the Nugget Casino Resort and has a lease agreement with Nugget Sparks (OpCo), which operates the Nugget Casino Resort, for an annual rental fee of $15 million.
Century Entertainment stated that it will receive a share of $1.9 million per quarter from the rent from OpCo, before any expenses are incurred.
The Nugget Casino Resort in Sparks, Nevada, is a full-service resort with 50,200 square feet of casino space, 859 slot machines, and 29 table games.
The resort also includes two hotel towers, 110,000 square feet of meeting space, an 8,555-seat amphitheater, multiple casual and fine dining restaurants, live bars and lounges, and a five-level, 1,200-space parking garage.
The company will grow its North American holdings by purchasing PropCo, which will increase its casino count to 10, with 6,700 gaming machines and 140 table games.
Besides buying PropCo, the company also signed a deal last month to acquire PropCo’s membership interests and all of OpCo’s membership interests for $100 million.
The company said the deal is expected to be finalized within a year, pending approval from the Nevada Gaming Commission.
After the purchase is complete, the company will own the operating assets of the Nugget Casino Resort and a 50% membership interest in PropCo. The company will also have a five-year option to buy the remaining 50% membership interest in PropCo for $105 million plus 2% per year.
The company is funding the PropCo purchase through a new credit facility provided by Goldman Sachs Bank USA.
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