Century Casinos Agree to Buy the Nugget Casino Resort
Century Casinos have agreed to a deal that includes buying the Nugget Casino Resort. Century is to pay Marnell Gaming $195m for 100% of Nugget Casino, costing $100m. The other $95m is for a 50% stake in PropCo, which owns the land on which the Nugget Casino is situated.
PropCo will lease the land to Century for an annual rent of $15m, but going forward, Century has an option to buy the other 50% stake in PropCo for $105m.
The Nugget Casino Resort has two hotel towers with over 1,300 rooms and is situated in Sparks, Nevada. There are 50,000 square feet of casino floor, dining venues, bars and lounges, and an 8,500-seat outside arena. The Resort had operating revenue of $100m and Adjusted EBITDA of $32m for the provisional results for the year ending December 2021.
We have been looking at entering the Reno market for a long time, and we believe the Nugget is a perfect fit for our portfolio. We look forward to welcoming the great team at the Nugget to Century Casinos. We believe there is a lot of upside to this transaction and that we identified some areas of improvement to continue the Nugget's growth. We expect the Nugget to seamlessly integrate and provide added synergies for Century Casinos' US portfolio.
To finance the acquisition, Century has received support from Goldman Sachs in the form of a letter of commitment for a $350m loan. Once the purchase of the Nugget Casino is complete, Century will now own 10 casinos in North America.