The Louisiana Gaming Control Board on Monday unanimously granted approval for Pinnacle Entertainment to sell and lease back its four casinos in the state to the owner and operator of Hollywood Casino Baton Rouge.
Pinnacle will sell L’Auberge Baton Rouge, L’Auberge Casino Resort in Lake Charles, Boomtown Casino Hotel in New Orleans and Boomtown Casino Hotel in Bossier City to Gaming and Leisure Properties. The approval from the Louisiana board is one of the last steps needed before the transaction can be finalized.
Anthony Sanfilippo, Pinnacle chief executive officer, said in a statement that Colorado gaming regulators are expected to take the transaction up on Thursday. If it is approved, the transaction with Gaming and Leisure Properties should be finalized on April 28.
“We believe the healthy liquidity and leverage profile that our company will have following the completion of our transaction with Gaming and Leisure Properties provides a solid foundation for future growth,” Sanfilippo said.
Pinnacle wants to sell 14 of its 15 casino properties to Gaming and Leisure Properties, then lease them back for an initial annual rent of $377 million. Including debt, Gaming and Leisure Properties said the deal is worth about $4.1 billion.
Gaming and Leisure Properties is a real estate investment trust based in Pennsylvania that was spun off from Penn National Gaming in 2013. It owns the casinos that Penn National runs, along with operating Hollywood Baton Rouge and a casino in Perryville, Maryland.
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