Twin River Worldwide Holdings increased its existing bank credit agreement by $275 million, which will fund the company’s previously announced purchase of two casinos from Eldorado Resorts.
Rhode Island-based Twin River said the funding will close May 11 with a portion of the funds used to acquire Eldorado Shreveport in Louisiana and MontBleu in Lake Tahoe, Nevada for a combined $180 million. Separately, Twin River is acquiring Bally’s Atlantic City from Caesars and real estate investment trust VICI Properties for $25 million.
While the regulatory approval process for those transactions is taking place, Twin River intends to repay $250 million of revolving credit under the bank credit facility, which will be available for future borrowing in accordance with the credit agreement.
Twin River had roughly $385 million in cash on hand on March 31 and $250 million of revolving credit, with no substantial maturities before 2024. This additional liquidity will nearly double Twin River’s excess cash and credit.
“While we remain optimistic about reopening, this additional financing ensures we have the financial resources necessary to continue funding operations, servicing our obligations, and pursing organic and strategic growth opportunities through the COVID-19 crisis,” Twin River CEO George Papanier said in a statement.
The casino acquisitions expand the company’s footprint into three new states—Nevada, New Jersey, and Louisiana. Twin River currently operates seven casinos in Rhode Island, Mississippi, Delaware, and Colorado.
Twin River is also waiting to close on a deal announced last year to acquire casinos in Kansas City, Missouri, and Vicksburg, Mississippi.
