Maverick Gaming will buy the Eldorado Casino and Resort in Shreveport, Louisiana from Eldorado Resorts for $230 million.
For Eldorado, the deal will allow the company to reduce its debt as it prepares to complete a $17.3bn merger with Caesars.
“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,” Tom Reeg, Chief Executive Officer of Eldorado, said.
Maverick Gaming will add a first location east of Colorado to its portfolio. The group currently operates Wendover Nugget and Red Garter Hotel, the Red Lion Casino and the Gold Country Casino in Nevada as well as 19 card rooms in Washington State and three casinos in Colorado, which were purchased in December 2019 from CC Gaming.
The Eldorado Casino includes a gaming floor space of approximately 29,000 sq. ft, around 1,500 slot machines, 50 table games, more than 400 hotel rooms and six restaurants.
Maverick intends to fund the purchase through cash on hand and financing from two private investment firms; GVora Capital Management and Angelo Gordon.
“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,” Maverick Gaming owner Eric Persson said.
We look forward to growing our portfolio over the near term in partnership with both investment firms.”
The transaction is subject to regulatory approvals and the completion of the Eldorado/Caesars merger.
Macquarie Capital is acting as financial advisor and Milbank LLP is acting as legal counsel to Eldorado for the deal.