New Bally’s Chicago Architectural Redesign
to Complement Chicago Skyline and Feature 500-Room Hotel
Tower as a Single-Phase Development Project
Access to Site and Beginning Construction of
Chicago Permanent Casino and Entertainment Complex
Bally’s and Gaming and Leisure Properties to
Jointly Develop Bally’s Chicago Permanent Casino and Entertainment
Complex Targeted to Open September 2026
Construction Financing is Key Milestone
Towards Bally’s Chicago Initial Public Offering of 25% Qualified
Minority Ownership Pursuant to Host Community Agreement with City
of Chicago
Bally’s Corporation (NYSE: BALY) ("Bally’s”) today announced it
has entered into a binding term sheet for a strategic construction
and financing arrangement with Gaming and Leisure Properties, Inc.
(NASDAQ: GLPI) (“GLPI”) including funding to complete the
construction of Bally’s permanent casino development in the City of
Chicago (the “Project”).
Transaction Details
An affiliate of Gaming and Leisure Properties has reached an
agreement to acquire the real estate underlying the Project and has
agreed to amend the existing land lease via a new master lease
agreement (“Chicago MLA”) with Bally’s Chicago Operating Company,
LLC (“Bally’s Chicago” or the “Company”) as tenant, where the rent
will be amended to $20.0 million per annum, subject to annual
escalators, reflecting the purchase price paid by GLPI for the
land. The Chicago MLA can provide up to additional $940 million of
construction financing funding for the Project’s “hard costs”
through monthly draws, subject to certain conditions and requisite
approvals. The Chicago MLA will have an initial term of 15 years,
with a specified number of successive options for renewal. Amounts
funded by GLPI under the construction funding facility will result
in additional rent based upon an 8.5% cap rate for the incremental
amounts funded.
The binding term sheet also provides for Gaming and Leisure
Properties to acquire and lease back certain real property
interests underlying Bally’s Kansas City and Bally’s Shreveport for
$395 million in total consideration, in exchange for $32.2 million
in initial annual rent with annual escalators consistent with
Bally’s existing master lease agreement with GLPI (“Sale Leaseback
Transactions”). Bally’s expects to use all the proceeds from the
Sale Leaseback Transactions to repay amounts currently drawn under
its $620 million revolving credit facility and for general
corporate purposes.
Bally’s also expects to amend its Contribution Agreement with
Gaming and Leisure Properties and has reiterated its intention to
sell and lease back its Twin River Lincoln property to GLPI prior
to the end of 2026 for $735 million, with related initial annual
rent of $58.8 million (the “Lincoln Transaction”). As a part of the
amendment, GLPI will be granted a right to call the Lincoln
Transaction beginning in October 2026, coinciding with the
scheduled maturity of Bally’s revolving credit facility. All such
transactions are subject to required regulatory approvals.
The Chicago MLA and construction funding arrangement will be
obligations of Bally’s Chicago, as tenant. The arrangement is
expected to contain customary representations by Bally’s Chicago
and is expected to contain funding conditions, in each case, which
are customary and reasonable for large scale casino resort
developments of this type.
Reflecting these transactions, GLPI will provide in aggregate up
to $2.07 billion of financing to Bally’s, thereby further cementing
the companies’ long-term strategic alliance. GLPI has a strong
history of successful development experience and construction
oversight of casino resort projects, and Bally’s looks forward to
benefitting from their experience and expertise as a strategic
stakeholder for the Project.
Bally’s Chicago Full Financing Details
Bally’s expects the new funding and development agreements with
Gaming and Leisure Properties, combined with certain proceeds from
the expected Sale Leaseback Transactions, the planned, previously
announced, initial public offering of Bally’s Chicago, Inc., and
Bally’s financial resources including cash flows from operations,
will fully fund the development expenditures necessary to complete
the Project.
New Chicago Casino Entertainment Complex Design
Details
Today Bally’s Chicago announced its intention to build the
500-unit hotel tower concurrent with its casino entertainment
complex by locating the hotel tower on the southern end of the
development site. Originally intended for the northern end, the
plan was revised due to potential risks of damage to portions of
Chicago’s underground infrastructure. The new plans resolve those
concerns, and Bally’s Chicago has re-imagined the new integrated
complex across a single phase of construction. Renderings of the
new design are available at
http://ballyschicago.com/renderings.
Initial Public Offering of Bally’s Chicago, Inc.
The contemplated initial public offering of Bally’s Chicago,
Inc. will offer individuals and minority-owned and women-owned
businesses that meet the qualification requirements contemplated by
the Host Community Agreement with the City of Chicago to
participate in 25% equity ownership in the Bally’s Chicago project.
Bally’s may also pursue other complementary financings at Bally’s
Chicago to supplement the project financing as market conditions
allow.
Management Comments
Soo Kim, Chairman of Bally’s Corp., commented, “Our agreements
with GLPI fulfill the construction financing requirements, allowing
us to bring the Bally’s Chicago permanent casino and entertainment
complex to River North by the fall of 2026. We are delighted to
continue our strong partnership with GLPI and to leverage its
skilled resources and 30 years of experience developing and
constructing successful gaming facilities. This is an amazing
partnership that continues to pay strong dividends for both
parties.”
Peter Carlino, Chairman and CEO of GLPI commented, “We are
excited to partner in Bally’s Chicago marquee development project
which will be the flagship of Bally’s platform, and an iconic
addition to the Chicago skyline. We are appreciative of Bally’s
trust in GLPI as its selected strategic financing partner. This is
a natural extension of our corporate growth strategy to work
closely with tenants and finance the construction of development
projects, and to pursue built-to-suit partnerships in the gaming
sector where we have experience and can contribute GLPI’s
extensive, proven development and construction capabilities.
Strategically, this is a means to grow our asset portfolio within
the gaming sector that we know well and allows us to create value
for our shareholders. We have strong confidence in Bally’s team and
will be working hand-in-hand with Bally’s to bring this project to
fruition on time and on budget.”
About Bally’s Corporation
Bally's Corporation is a global casino-entertainment company
with a growing omni-channel presence. It currently owns and manages
15 casinos across 10 states, a golf course in New York, a horse
racetrack in Colorado, and has access to OSB licenses in 18 states.
It also owns Bally's Interactive International, formerly Gamesys
Group, a leading, global, online gaming operator, Bally Bet, a
first-in-class sports betting platform, and Bally Casino, a growing
iCasino platform.
With 10,600 employees, the Company's casino operations include
approximately 15,300 slot machines, 580 table games and 3,800 hotel
rooms. Upon completing the construction of a permanent casino
facility in Chicago, IL, and a land-based casino near the Nittany
Mall in State College, PA, Bally's will own and/or manage 16
casinos across 11 states. Bally’s also has rights to developable
land in Las Vegas post the closure of the Tropicana. Its shares
trade on the New York Stock Exchange under the ticker symbol
"BALY".
About Bally’s Chicago
The Bally’s Chicago resort will harness the beauty of the urban
Chicago riverfront site, located at 777 W. Chicago Avenue, to
create inclusive, dynamic spaces, including plans for a 3,000-seat
theater, a 2-acre public park and open outdoor spaces, six
restaurants, cafes and a food hall. The lower riverbank will be
connected to the property with an approximately 2,000-foot
extension of the riverwalk. The casino will offer space for
approximately 3,300 slots, 173 table games and VIP gaming areas,
while the hotel tower will include a large pool spa, fitness center
and sun deck, as well as a rooftop restaurant bar to enjoy the
Chicago skyline. The planned 500-room, 34-story hotel tower will
now be located on the south end of the site. The development will
generate approximately 3,000 construction jobs and 3,000 casino
jobs when Bally’s Chicago becomes operational.
The references included herein to the contemplated initial
public offering of Bally’s Chicago, Inc. do not constitute an offer
of any securities for sale. Such securities may not be sold nor may
offers to buy be accepted prior to the time a registration
statement filed with the U.S. Securities and Exchange Commission
has become effective.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements may generally be identified by the use of words such as
“anticipate,” “believe,” “expect,” “intend,” “plan” and “will” or,
in each case, their negative, or other variations or comparable
terminology. These forward-looking statements include all matters
that are not historical facts. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future. As a result, these statements are not guarantees of future
performance and actual events may differ materially from those
expressed in or suggested by the forward-looking statements. Any
forward-looking statement made by Bally’s in this press release,
its reports filed with the Securities and Exchange Commission
(“SEC”) and other public statements made from time-to-time speak
only as of the date made. New risks and uncertainties come up from
time to time, and it is impossible for Bally’s to predict or
identify all such events or how they may affect it. Bally’s has no
obligation, and does not intend, to update any forward-looking
statements after the date hereof, except as required by federal
securities laws. Factors that could cause these differences include
those included in Bally’s Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and other reports filed by Bally’s with the
SEC. These statements constitute Bally’s cautionary statements
under the Private Securities Litigation Reform Act of 1995.
About Gaming and Leisure Properties, Inc.
GLPI is engaged in the business of acquiring, financing, and
owning real estate property to be leased to gaming operators in
triple-net lease arrangements, pursuant to which the tenant is
responsible for all facility maintenance, insurance required in
connection with the leased properties and the business conducted on
the leased properties, taxes levied on or with respect to the
leased properties and all utilities and other services necessary or
appropriate for the leased properties and the business conducted on
the leased properties.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240711105791/en/
Investor Contact Marcus Glover Executive Vice President
and Chief Financial Officer 401-475-8564 IR@ballys.com Media
Contact Diane Spiers VP Marketing & PR
PressInquiries@ballys.com Investor Contact Matthew Demchyk
Chief Investment Officer 610-401-2900
investorinquiries@glpropinc.com Investor Relations JCIR
Joseph Jaffoni James Leahy Richard Land 212-835-8500
GLPI@jcir.com
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