MARYLAND HEIGHTS, MO-Caesars Entertainment is selling its Harrah’s St. Louis casino here to Penn National Gaming Inc. for $610 million. Under the agreement, Penn will rename the gaming facility, which includes a 500-room hotel, with its Hollywood brand.
Penn said in a statement that it will acquire the stock of the facility for a price that represents a multiple of 7.75 times the property’s trailing 12-month EBITDA, funding the purchase through an existing senior secured credit facility. However, the transaction will be treated as an asset purchase for tax purposes.
The casino is directly off of Interstate 70, on 294 acres adjacent to the Missouri River. The 109,000-square-foot casino has 2,600 gaming machines and 85 table games, as well as nine restaurants and bars, and a 4,644-space structured and surface parking area. The property is about 25 miles southwest of Penn’s Argosy Casino Alton.
Peter Carlino, CEO of Penn, says he believes the facility is extremely well-positioned in a large metropolitan market. “We believe the addition of Harrah’s St. Louis highlights our commitment to build shareholder value through return-focused capital deployment and complements our existing development pipeline which includes the scheduled opening of Hollywood Casino Toledo later this month and Hollywood Casino Columbus later this year along with the recent opening of Hollywood Casino at Kansas Speedway,” Carlino said in the statement. “We continue to evaluate other domestic regional gaming opportunities where we can leverage our balance sheet and proven operating disciplines.”
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