Bally’s Strengthens Financial Position with New Credit Commitments and Property Sale
Expansion of Credit Facility and New Maturity Date
Bally’s Corporation has recently secured additional commitments to its revolving credit facility, expanding the extended maturity tranche to $510 million. This adjustment has resulted in a new maturity date set for October 2028, enhancing the company’s financial stability.
Significant Sale-Leaseback Agreement
The company has received approval from lenders holding a combined $670 million in revolving credit facility commitments for a $735 million sale-leaseback transaction involving the Twin River Lincoln Casino Resort. This strategic move aims to improve Bally’s financial flexibility by leveraging its real estate assets.
Debt Reduction Strategy
These actions form part of Bally’s broader plan to reduce debt burdens and improve liquidity. The corporation has pledged to lower its secured debt and credit facilities by $500 million, starting with a permanent 7.5% reduction in outstanding revolving credit facility commitments to approximately $574 million.
Moreover, Bally’s is exploring further debt reduction opportunities, including plans to sell its interactive division, which could provide additional capital for debt repayment.
Company Overview and Growth Prospects
Bally’s operates 20 casinos across 11 U.S. states and also runs a retail casino in Newcastle, UK. The company reported an annual revenue of $2.46 billion. Bally’s continues to explore expansion opportunities, including a potential new property in New York as its bid for a casino in the Bronx proceeds, despite earlier opposition from city officials.
Additional Financial Moves and Future Projects
Recently, Bally’s amended its credit agreement to increase its senior secured revolving credit facility by $50 million, extending commitments through 2028. This increase complements a separate $460 million extension to its revolving credit facility, also maturing in 2028, and was achieved through partnership with financial institutions such as Jefferies Finance LLC and Deutsche Bank AG.
In addition to strengthening its financial position, Bally’s has announced plans for a new entertainment resort on the Las Vegas Strip. This ambitious project will include luxury hotel towers, an entertainment venue, and retail spaces. It will be situated on a shared campus alongside a proposed Major League Baseball stadium, signaling a major development for the area.
