Maverick Gaming to purchase Eldorado Casino and Resort for $230M
Monday 13th January 2020
LAS VEGAS (KTAL/KMSS) - Maverick Gaming LLC announced Monday that it has entered a definitive agreement to purchase Eldorado Casino and Resort in Shreveport, Louisiana from Eldorado Resorts, Inc. for $230 million in cash.
In their own announcement of the pending sale, Eldorado Resorts said that the deal is subject to the closing of a previously announced merger with Caesars Entertainment Corporation.
"The agreement to divest the Eldorado Shreveport is consistent with our continued focus on reducing debt ahead of the expected closing for the Caesars transaction in the first half of 2020," Eldorado Chief Executive Officer Tom Reeg said.
Reeg has previously said the company would need to sell a northern Louisiana property to avoid any federal antitrust issues. The merger with Caesars will give the company ownership of Horseshoe Bossier City.
Once the transaction is closed, about 1,500 slots, 50 table games, six restaurants, and more than 400 hotel rooms will be added to the Maverick portfolio.
"Maverick continues to bet on diversified economies as we expand our gaming portfolio," Maverick Gaming Owner Eric Persson said in a statement released on the pending purchase Monday.
"The population in the Dallas market exceeds 7.5 million people, and Dallas encompasses the third-largest concentration of Fortune 500 companies in the United States. Maverick's focus to date has been on the growing, vibrant and dynamic economies of Salt Lake City, Utah Seattle, Washington and Denver, Colorado. The Company now adds Dallas to that list."
The Nevada-based company intends to fund the transaction primarily with cash on hand and financing from HG Vora Capital Management and Angelo Gordon, both of which are private investment firms.
"HG Vora is an important financing partner for Maverick Gaming with deep experience in the gaming and lodging sector, and we are pleased to also begin a new strategic partnership with Angelo Gordon, a firm that brings a strong track record in providing innovative finance solutions. We look forward to growing our portfolio over the near term in partnership with both investment firms" Mr. Persson said.
The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in 2020.
The art deco-inspired property was built and opened as a Hollywood Casino in 2000. Eldorado bought it five years later, after Hollywood's creditors forced it into bankruptcy.
Maverick Gaming currently owns 26 properties in three states: Nevada, Colorado, and Washington state.