Bally’s Corporation Enhances Portfolio with Standard General Merger
Bally’s Corporation Finalizes Strategic Merger
Bally’s Corporation (NYSE: BALY) recently completed notable transactions that enhance its position in the gaming and entertainment sector. This merger with Standard General L.P. and its affiliates, including The Queen Casino & Entertainment, marks a significant milestone for Bally’s, which now operates under a broader and more dynamic corporate structure.
Details of the Transaction
Under the merger agreement, Bally’s and Queen combined operations, resulting in Queen shareholders receiving a total of 30.5 million shares. Additionally, Bally’s provided cash consideration of $18.25 per share to 22.8 million of the Company’s existing shares, a financial maneuver made possible through a mix of funding sources including a substantial $500 million in senior secured notes due by 2028, offered primarily by Apollo.
This strategic move not only allows Bally’s to strengthen its industry foothold but also gives a chance for existing shareholders to maintain their investment through a rollover election. Following the merger, 48.4 million shares of common stock are now outstanding, paired with warrants for 11.6 million additional shares.
Trading Updates and Future Plans
Shareholders who opted for the rollover election will see their shares continue trading on the New York Stock Exchange. It's noteworthy that the trading symbol for these shares will revert back to “BALY” after a specific period, marking a new chapter for the company.
Bally’s Expanding Reach with New Casinos
Bally’s current operations include 19 casinos spread across multiple states along with diverse offerings such as a golf course in New York and a horse racetrack in Colorado. The newly acquired Belle of Baton Rouge and Casino Queen Marquette are set for conversion, with projects anticipated to conclude in 2025, indicating a focus on enhancing customer experiences and operational efficiencies.
Robust Online and Sports Betting Presence
With licenses for online sports betting in 13 jurisdictions across North America, Bally’s boasts a robust offering in the digital marketplace. The Company operates Bally Bet, its innovative sports betting platform, as well as the Bally Casino, which has gained traction as an interactive casino platform currently serving four states. Furthermore, Bally’s Interactive International, previously known as Gamesys Group, is making waves as a global player in the interactive gaming landscape.
Understanding Bally’s Corporation
Bally’s Corporation is more than just a casino operator; it is a comprehensive entertainment entity with aspirations for growth and expansion. Holding significant stakes in the global gaming sector, Bally's is dedicated to providing riveting experiences through its various platforms.
The company manages an impressive portfolio of 17,700 slot machines, 630 table games, and offers roughly 3,950 hotel rooms across its operations, ensuring that it caters to a wide array of guests. Its holdings include the rights to developable land at the iconic former Tropicana Las Vegas site, which opens doors for potential future developments.
The Advisory Team Behind the Merger
In every successful transaction, a team of esteemed advisors is pivotal. For this merger, Macquarie Capital served as the financial advisor to the Special Committee of Bally’s Board of Directors. Various legal firms including Sullivan & Cromwell LLP and Nixon Peabody LLP provided essential legal guidance throughout the transaction.
Frequently Asked Questions
What is the significance of the merger for Bally's Corporation?
This merger strengthens Bally's market position, expanding its operational capabilities and market presence significantly.
How many casinos does Bally's Corporation own?
Bally's operates 19 casinos across 11 states, showcasing its extensive footprint in the gaming industry.
What platforms does Bally's offer for sports betting?
Bally’s offers the Bally Bet sports betting platform and Bally Casino, enhancing its presence in the online gaming sector.
What are the future plans for the newly acquired casinos?
The Belle of Baton Rouge and Casino Queen Marquette are currently undergoing land-side conversions, expected to be completed by 2025.
Who acted as advisors for this merger?
Macquarie Capital and several legal teams guided the merger, ensuring proper compliance and strategic alignment throughout the process.
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