Published: Tue, April 17, 2018
People | By Neil Grant

Tropicana Casino Sale to Fetch $1.85 Billion for Icahn

Tropicana Casino Sale to Fetch $1.85 Billion for Icahn

Gaming and Leisure Properties, a company that owns 37 casinos in the US, will add to its portfolio by acquiring almost all of Tropicana Entertainment's real estate, except the MontBleu and the Tropicana Aruba, for $1.21 billion.

Icahn Enterprises purchased a stake in Tropicana in 2008 when the company was in bankruptcy, and the company has been cited as a shining star among other properties in the beleaguered Atlantic City.

NEW YORK - NOVEMBER 2: (U.S. TABS AND HOLLYWOOD REPORTER OUT) Finacier Carl Icahn is seen being interviewed at "David Moore's Funny Business Show" at Caroline's on Broadway on November 2, 2005 in New York City. "Tropicana Atlantic City, Lumiere and Evansville - all stand out as top notch assets", Union Gaming Research analyst John DeCree said.

The companies expect the deals to close in the second half of the year, subject to necessary approvals.

Eldorado will also get the Tropicana Laughlin Hotel and Casino and the MontBleu Casino Resort & Spa in South Lake Tahoe, Tropicana Evansville in Indiana, Belle of Baton Rouge Casino & Hotel in Louisiana, Trop Casino Greenville in MS and Lumière Place in Missouri.

This is a developing story.

The company reached a deal to sell Tropicana's real estate to Gaming and Leisure Properties Inc.

These properties include approximately 7,900 slot machines, 265 table games and 5,400 hotel rooms plus dining, retail and entertainment amenities.

The transaction doesn't include Tropicana Aruba Resort.

Reno-based Eldorado owns and operates twenty properties in 10 US states, including Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, Pennsylvania and West Virginia.

Gary Carano, Chairman and Chief Executive Officer of Eldorado, commented, "With our proposed acquisition of Tropicana Entertainment, Eldorado Resorts is yet again pursuing a large transaction that is expected to be accretive, further increase the scale of our regional gaming platform and drive free cash flow growth". The company said the "Tropicana portfolio is in good shape and we have no immediate significant capex plans acquired properties". Eldorado will pay $640 million in cash.

In Atlantic City, Icahn still owns the shuttered former Trump Plaza Hotel and Casino, which shut down in 2014.

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