Bally's Corp current report, 24 April 2020

Filing Overview

Twin River Worldwide Holdings, Inc. (now Bally’s Corp.) filed a Form 8-K dated April 24, 2020, reporting agreements to acquire three casino properties and related forward-looking risks. The filing does not report quarterly operating results or a specific financial reporting period.

Transactions and Financial Terms

  • Eldorado Shreveport and Lake Tahoe MontBleu: Agreed purchase price of $155 million, subject to customary post-closing adjustments. $140 million is payable at closing and $15 million one year later.
  • Bally’s Atlantic City: Separate agreements provide for the acquisition of the casino operations and underlying real estate for $25 million in cash, subject to customary post-closing adjustments.
  • Total stated consideration: $180 million before adjustments. The filing does not provide financing terms, pro forma results, expected margins, cash-flow effects, debt metrics, or liquidity balances.

Material Changes and Conditions

  • Closing of the Eldorado transactions requires gaming authority and Federal Trade Commission approvals and is also conditioned on the prior or concurrent closing of Eldorado’s merger with Caesars Entertainment.
  • Eldorado may terminate the agreement if Twin River has not obtained at least $140 million of additional financing or financing commitments by May 12, 2020.
  • The Eldorado transaction generally must close by April 24, 2021, with a possible extension to June 24, 2021 for required regulatory approvals.
  • The Bally’s Atlantic City transaction is subject to required regulatory approvals and other customary closing conditions.

Guidance, Risks, and Unusual Items

  • No formal earnings or financial guidance was provided.
  • Termination fees may apply: $5.4 million payable by Eldorado or Twin River in specified regulatory-failure circumstances; $15 million payable by Eldorado if the sale fails because the Eldorado/Caesars merger does not close.
  • Key risks include financing availability, regulatory and gaming approvals, the Eldorado/Caesars merger, COVID-19-related uncertainty, and the ability to complete and integrate the acquisitions.
  • The filing states that forward-looking statements reflect management’s views as of April 24, 2020 and may change without subsequent public updates.

Investor Verification Checklist

  • Verify whether all required regulatory approvals and financing commitments were obtained.
  • Confirm whether the Eldorado/Caesars merger condition was satisfied and whether the acquisitions closed.
  • Review final purchase-price adjustments, funding sources, and any resulting debt or liquidity impact.
  • Assess the acquired properties’ operating performance and COVID-19 effects after closing.
  • Read the full Equity Purchase Agreement filed as Exhibit 2.1 for complete representations, covenants, indemnities, termination rights, and closing conditions.