Bally’s moves forward with $190m common share purchase via modified Dutch auction format
The company seeks to buy back a fifth of its issued and outstanding shares.
Bally’s Corporation has initiated a previously announced plan to buy its common shares for cash at a price per share ranging between $19.25 and $22.00 per share. The company has announced the tender will be structure in a Dutch auction format and the amount involved will not exceed an aggregate purchase price of $190m.
The tender offer will begin immediately and will end July 22, 2022, subject to company modifications.
Bally’s Board of Directors decided that the company should pursue the tender offer, valued at up to $190m, because of recent changes to the capital market. The company plans to return capital to its shareholders via a $350m capital return program was previously announced.
Through the purchase, Bally’s will buy back between 16.4% to 18.8% of its issued and outstanding shares. The final figure will be determined by the payable price of the tender offer.
The company said in a statement: “All shares accepted in the tender offer will be purchased at the same price, which may be higher or lower than the market price immediately prior to or during the tender offer.
“Bally’s intends to fund the purchase of shares and to pay the fees and expenses in connection with the offer with cash on hand and existing financial resources, including, if necessary, borrowings under its revolving credit facility.”
Bally’s is a global casino and entertainment company that owns and manages 14 casinos in ten US states. Its casino operations have a total of 5,300 hotel rooms, 500 tables games and more than 15,800 slot machines.
The company owns a horseracing track in Colorado and has access to OSB licenses in 16 states.
Bally’s Corporation recently signed a purchase agreement to invest $5m in Snipp Interactive. The company is expected to own close to 9% of Snipp’s common and outstanding shares once the investment deal is complete.
As part of the agreement, Bally’s will receive a license for the SnippLOYALTY software program for a three-year term. The company will implement Snipp’s software across its online and physical properties. The first two deployments are expected to begin during the second quarter of this year.
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