Twin River Worldwide Holdings announced yesterday it commenced an issuance of senior unsecured notes to the amount of $125 million. The new notes constitute an addition to a previous issuance of senior notes due 2027, amounting $400 million and paying 6.75%.
Qualified Institutional Buyers Only
The Rhode Island-based casino operator noted that the new notes will be offered for purchase only to persons that are reasonably believed to be qualified institutional buyers, within the remits of Rule 144A under the Securities Act 1933, as well as to some non-US persons outside of the United States, according to Regulation S of the Securities Act.
Twin River expects the offering of new notes which commenced yesterday and would bring the aggregate amount of 6.75% senior unsecured notes due 2027 to $525 million, to close October 9, 2020, subject to customary closing conditions. The company said it would use the net proceeds from it for general corporate purposes, including new acquisitions.
The announcement for the additional issuance of debt comes shortly after Twin River entered into an agreement with Delaware North Companies Gaming & Entertainment for the purchase of Jumer’s Casino & Hotel in Rock Island, Illinois. Both parties agreed to an all cash offer of $120 million.
The casino operator is still to announce the completion of the acquisitions of Bally’s Atlantic City, for a reported $25 million, and the combined purchase of Eldorado Shreveport casino property and the operations of MontBleu Resort Casino for $155 million.
Q3 Preliminary Results
In addition to the new issuance of unsecured notes, Twin River posted its preliminary third quarter operating results, estimates based on the latest information available and subject to change as the company completes its quarterly closing procedures.
The casino operator expects for the 3-month period ending September 30 consolidated revenues to be in the $100 million to $130 million bracket, and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) to come up between $30 million and $40 million.
Excluding the acquisitions of Casino Vicksburg (former Lady Luck) and Casino KC (former Isle of Capri), Twin River expects to finish Q3 cash flow positive and have a liquidity exceeding $360 million, including its revolving credit facility. The final quarterly results the company anticipates to report in late October or at the beginning of November.
Preliminary estimates provided by Twin River may become subject to adjustments as the operator may identify certain issues requiring an amendment to the operating results so far, Twin River noted, warning that actual results may differ from the ranges of the preliminary ones, and in some cases these differences may be material.