There was an announcement made this week about Eldorado Resorts acquiring the Isle of Capri Casinos in a deal which is $1.7 billion worth.
The merger is inclusive of long term debt of $929 million of Isle of Capri along with its subsidiaries as stated by the companies. After the transaction gets completed, Eldorado will reap benefits through high geographic and operational diversity as there will be inclusion of 13 casino resorts in its portfolio. This would be applicable for 20 properties in total in 10 states. Eldorado has already been operating several casinos between Nevada, Reno and West Virginia, Ohio and Pennsylvania. The revenues would have been around $1.8 billion if the revenue from the companies is combined together in 12 months before July.
The purchase of Isle of Capri will certainly mean a transformation in terms of growth opportunity for Eldorado. It is indeed an important milestone towards the achievement of long term strategies for expansion of gaming platform as per the CEO of Eldorado. Gary Carano also said that the company has created best value for their shareholders in the last 2 years. The Eldorado Resorts will expand eventually from what it was. From 2 fully owned properties along with 50 percent interest in the 3rd property in 2 markets in 2014 to around 20 properties in 10 different states soon after the completion of the transaction.
Eldorado Resorts have gotten financing of $2.1 billion from J.P Morgan. Well, the deal is likely to close very soon. The tentative period would be in the 2nd quarter of 2017. As per the current latest news, the resort is investing over $50 million towards enhancement of facilities to Sliver Legacy, Eldorado Reno and Circus Reno. There are a whole lot of changes and upgrades taking place with the introduction of new concepts and resort amenities. The upgrades will certainly be advantageous to the company.