Twin River revealed the business took a step toward financial normality in the third quarter with revenue set to come in between $100m and $130m, as it announced plans to raise $125m, which may fund future acquisitions.
The $100m in revenue for the three months ended 30 September would represent a 22.7% year-on-year decline, though a $130m figure would be a 0.5% improvement on the prior year.
Either figure, however, would represent a significant advance from the second quarter, when revenue fell to just $28.9m, as its properties closed for much of the period due to the novel coronavirus (Covid-19) pandemic.
Twin River’s earnings before interest, tax, depreciation and amortisation (EBITDA), meanwhile, appears in line with Q3 of 2019, falling between $30m (down 15.7%) and $40m (up 12.4%).
The business intends to raise the $125m through a private offering of senior unsecured notes.
The notes will carry a 6.75% interest rate and will be due in 2027. They follow the issuance of $400m worth of notes with the same interest rate and due date in May 2019.
“Twin River intends to use the net proceeds of this offering for general corporate purposes, which could include, in addition to funding operations, acquisitions and other transactions,” operator said.
Last week, the operator agreed to acquire Delaware North’s Jumer’s Casino & Hotel in Rock Island, Illinois, its first property in the state, for $120.0m.
In addition, the operator is in the process of acquiring three properties divested by the business formed through the merger of Caesars Entertainment and Eldorado Resorts.
It will purchase the Louisiana-based Eldorado Shreveport Resort and Casino, and its Nevada property Mont Bleu Casino Resort & Spa in Lake Tahoe for $155m, as well as Caesars’ Bally’s Atlantic City property for $25m.
The notes may not be sold or transferred.