Century Casinos has completed a $56.1m acquisition of Rocky Gap Casino Resort operations from Golden Entertainment. An affiliate of Vici Properties has also acquired related interest in both the land and building on the property for around $203.9m.
With the addition of this gaming venue, located in Maryland’s Rocky Gap State Park, Century Casinos has increased its portfolio of properties to 19 global casinos. However, in May, it sold four Canadian properties to Vici.
Rocky Gap’s master lease agreement has been amended with Vici to include an increased, annualized rent of $15.5m. Rocky Gap Casino Resort has recently undergone $10m upgrades to its hotel, slot machines, restaurants and sports lounge with an option to expand further in the future as well.
The acquisition was financed with $30m borrowed from an existing credit agreement with Goldman Sachs USA, as well as by cash from its balance sheet. The full-service resort comprises 270 acres and also includes a 5,000 square-foot events center, a spa, an 18-hole golf course, meeting space and outdoor activities with over 25,000 square feet dedicated to its gaming floor.
Stifel was also brought on as an Exclusive Financial Advisor while Faegre Drinker Biddle & Reath LLP served as Legal Advisor during Century Casinos’ acquisition of the property.
Erwin Haitzmann and Peter Hoetzinger, Co-CEOs of Century Casinos, said of the transaction, "We are very excited to be expanding into Maryland. Rocky Gap is a great addition to our portfolio. We look forward to working with the staff and community to continue the current success at this property into the future."
