First thing Peter Carlino, chairman, president and CEO of Gaming and Leisure Properties Inc., mentioned on the firm’s q2 call was the firm’s earlier announced acquisition of Tropicana Entertainment earlier in the quarter. “And significantly, we did complete a refinancing of our 2018 debt maturities. Additionally this quarter, I think that the company continues to work towards closing the Tropicana transaction along with the Penn National Pinnacle Entertainment transaction as well.”
He also revealed that Penn has revealed publicly that they expect that transaction to close somewhere in the fourth quarter. “We’re thinking that the Tropicana transactions would close before year-end as well.”
He explained that that will add eight new properties to the REIT’s portfolio with an annual rent of approximately $156 million at a very attractive blended cap rate. “Interestingly, for me at least, things moved quickly.”
This fall, he said, it will be almost the company’s fifth year as a REIT, having spun from Penn. “I think I’m particularly pleased with what we’ve been able to accomplish over these last five years and adding these new properties is a terrific way to sort of round out the first five.
Carlino added that “The second quarter was a period of significant progress for the Company. We have addressed all 2018 debt maturities through our new debt financing transactions. We successfully refinanced the 2018 notes and repaid our Term Loan A as well as a portion of our Term Loan A-1 with a new $1.0 billion issuance of seven-year and 10-year notes at an attractive blended interest rate of 5.5%.”
He also pointed out that “We now have a well-laddered maturity schedule with no more than $1.0 billion of debt maturing in any calendar year with no maturities until November 2020. In addition, we amended our revolving credit facility to both extend the maturity to 2023 and increase the capacity to $1.1 billion. The new revolver will afford us substantial flexibility for financing future acquisitions while also significantly reducing our refinancing risk. We believe these transactions position the company with a stable capital structure and the flexibility to grow.”
The company had $144.5 million of unrestricted cash and $4.5 billion in total debt at June 30, 2018.