Gaming and Leisure Properties Completes Previously Announced Transaction to Acquire The Meadows Racetrack and Casino for $440...
September 12 2016 - 6:45AM
-Closes Sale of the Operating Assets to
Pinnacle Entertainment for $138 Million--Enters
into 29 Year Lease with Pinnacle for the Real Estate-
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) (“GLPI” or the
“Company”) today announced the closing of its previously-announced
transaction to acquire The Meadows Racetrack and Casino (“The
Meadows”) located in Washington, Pennsylvania, a suburb of
Pittsburgh, Pennsylvania, from Cannery Casino Resorts, LLC
(“Cannery”) for $440 million, inclusive of $10 million previously
paid, plus other transaction related fees and expenses. The Company
concurrently closed on the sale of the entities holding the gaming
licenses and operating assets to Pinnacle Entertainment, Inc.
(NASDAQ:PNK) (“Pinnacle”) for $138 million and entered into a 29
year triple net lease agreement, with initial annual rent of $25.4
million. The Company funded the transaction, net of proceeds
received from the sale of the operating assets to Pinnacle, through
a combination of cash on hand, proceeds from the Company’s
at-the-market (“ATM”) equity program and borrowings from the
Company’s revolving credit facility. The transaction, which
is expected to be immediately accretive, was approved by the
Pennsylvania Gaming Control Board on September 7, 2016 and the
Pennsylvania Harness Racing Commission in August 2016.
About Gaming and Leisure Properties GLPI is
primarily 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. GLPI elected to be taxed as a
real estate investment trust ("REIT") for United States federal
income tax purposes commencing with the 2014 taxable year and is
the first publicly traded triple-net lease REIT focused on
gaming.
Forward-Looking Statements This press release
includes “forward-looking statements” within the meaning of Section
27A of the Securities Act and Section 21E of the Securities
Exchange Act of 1934, as amended. These statements can be
identified by the use of forward looking terminology such as
“expects,” “believes,” “estimates,” “intends,” “may,” “will,”
“should” or “anticipates” or the negative or other variation of
these or similar words, or by discussions of future events,
strategies or risks and uncertainties. Such forward looking
statements are inherently subject to risks, uncertainties and
assumptions about GLPI and its subsidiaries, including risks
related to the following: the post-transaction impact on GLPI's
financial condition and operating results; GLPI's ability to
maintain its status as a REIT; our ability to access capital
through equity markets in amounts and at prices acceptable to GLPI;
changes in the U.S. tax law and other state, federal or local laws,
whether or not specific to REITs or to the gaming or lodging
industries; and other factors described in GLPI’s Annual Report on
Form 10-K for the year ended December 31, 2015, Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K, each as filed with
the Securities and Exchange Commission. All subsequent written and
oral forward looking statements attributable to GLPI or persons
acting on GLPI’s behalf are expressly qualified in their entirety
by the cautionary statements included in this press release. GLPI
undertakes no obligation to publicly update or revise any forward
looking statements contained or incorporated by reference herein,
whether as a result of new information, future events or otherwise,
except as required by law. In light of these risks, uncertainties
and assumptions, the forward looking events discussed in this press
release may not occur.
ContactInvestor
Relations
Kara SmithT: 646-277-1211Email: Kara.Smith@icrinc.com
Bill CliffordT: 610-401-2900Email: Bclifford@glpropinc.com
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