Golden Entertainment buys Stratosphere owner for $850m

Gaming properties operator Golden Entertainment has finalised the acquisition of casino holding company American Casino & Entertainment Properties for $850m (€723m). The deal will add three land-based casino properties to Golden Entertainment’s portfolio, including the Stratosphere Casino, Hotel & Tower in Las Vegas, Nevada, in the US. The purchase consideration consists of $781m in cash and approximately four million shares of Golden Entertainment common stock. Golden Entertainment financed the cash portion of the deal and also refinanced its existing credit facilities with a new $800m First Lien Term Loan and $200m Second Lien Term Loan. In addition, the company obtained a new $100m senior secured revolving credit facility to support future organic and strategic growth initiatives. “Our new properties and existing businesses are well positioned to grow as they benefit from Nevada’s continued economic strength, particularly in the Las Vegas market,” Golden Entertainment chairman and chief executive Blake Sartini said. “In addition, we have the ability to develop approximately 15 acres of excess real estate surrounding the Stratosphere, which we believe has enormous long-term potential.” Charles Protell, chief financial officer at Golden Entertainment, added: “We believe that our expanded asset base, strong operating discipline and ability to quickly realie synergies will result in increased free cash flow, allowing us to reduce leverage as well as reinvest in our existing businesses and new growth opportunities.”