Century Casinos has signed a definitive agreement with VIci Properties subsidiaries to sell its Alberta, Canada real estate. As part of the transaction, VICI will purchase four properties in the province that include Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack, and Casino and Century Downs Racetrack and Casino.
Both companies have agreed upon an aggregate purchase price of US$164.4m (CA$221.7m).
Vici Properties COO John Payne commented, “We are thrilled to announce our third international investment with the acquisition of Century’s four Canadian casino assets, demonstrating our ongoing desire to expand internationally and confidence in the Canadian gaming market.
“We are also pleased to continue growing our partnership with Century by supporting their asset monetization strategy, unlocking value that fuels their strategic growth initiatives.”
Century Casinos noted that the master lease will have a 15-year initial base as part of a mutually agreed-upon extension that will start at the close of the sale. The company said it will continue to guarantee its obligations laid out in the terms of the master lease.
Company Co-CEOs Erwin Haitzmann and Peter Hoetzinger said in a joint statement, "We are pleased to extend our good partnership with VICI to our Canada portfolio. This transaction unlocks the real estate value of our Canadian properties while continuing our Canadian operations and provides us with greater financial flexibility as we continue to grow.
“We intend to use the sale proceeds to fund improvements at the Nugget and for general corporate purposes.”
They went on to explain other ways the company will use the proceeds.
They said in closing, “We are also looking at the potential to apply some proceeds to paydown debt under our credit agreement and/or to return funds to shareholders through stock repurchases and/or a special dividend. We continue to evaluate the optimal use of our capital.”
Both companies expect to conclude the transaction during the second half of this year. The pending deal is subject to closing conditions and regulatory approvals.
