Bally’s Corporation is anticipating a better than expected operating performance at its land-based retail casinos and interactive businesses for the three month period ending June 30, 2021.
Issuing a trading update for the second quarter, Bally’s estimates that total consolidated revenue will be in the range of $258m to $268m, with adjusted EBITDA in the range of $80m to $84m.
These figures come in contrast to consolidated revenue of $28.9m and negative adjusted EBITDA of $10.7m which were recorded during the COVID-19 affected second quarter of 2020.
Furthermore, as a result of the performance, Bally’s says that it “does not plan to issue incremental common equity or draw on the previously disclosed Gaming and Leisure Properties commitment to fund the Gamesys acquisition.
“Bally’s continues to evaluate investment options with potential strategic partners and such investment is not necessary to fund the Gamesys acquisition.”
Consistent with UK regulatory requirements, Bally’s arranged bridge financing for the Gamesys transaction from Deutsche Bank AG, London Branch, Goldman Sachs USA and Barclays Bank PLC.
The group adds that it intends to seek to refinance the bridge facility and its and Gamesys’ debt through one or more capital market transactions, which are currently expected to include public or private bond offerings and a company-wide bank credit facility.
Closing of the transaction, which is subject to customary conditions including regulatory approval, is expected to take place during the fourth quarter of 2021
The combined group would be headquartered in Providence, Rhode Island, and its shares would retain their listing on the New York Stock Exchange. After completion, a request would be made to cancel trading in Gamesys shares and de-list from the London Stock Exchange.
Furthermore, it has been previously disclosed that Lee Fenton, Gamesys’ CEO, would occupy the same role in the combined group, with Robeson Reeves (Gamesys COO) and Jim Ryan (a non-executive director of Gamesys) to also join the US group’s board. George Papanier, Bally’s CEO, would remain a member of the board and a senior executive running the retail casino business.