Century Casinos has successfully concluded its acquisition of Nugget Casino Resort operations from Marnell Gaming for approximately $100 million. This strategic move expands Century Casinos’ presence into the Nevada market, a significant development for the company. The acquisition includes both the resort’s operations and the land and building on which Nugget is situated, making it a valuable addition to Century Casinos’ portfolio.
Acquisition Details:
Century Casinos acquired Nugget Casino Resort’s operations in a deal worth around $100 million. The purchase builds upon Century Casinos’ prior acquisition of 50% of the membership interests in Smooth Bourbon, the entity that owns the land and building housing the Nugget.
Lease Agreement:
Nugget Casino Resort has a lease agreement with Smooth Bourbon for the land and building, with an annual rent of $15 million. Following the acquisition, Smooth Bourbon will become a consolidated subsidiary of Century Casinos.
Financing:
The acquisition was financed using funds previously borrowed from Century Casinos’ existing credit agreement with Goldman Sachs USA, showcasing the company’s strategic financial planning.
Expansion Plans:
Century Casinos has outlined plans for enhancing the Nugget’s overall appeal. These plans include updates to the façade, signage, slot floor, and food and beverage venues. The company is committed to working closely with the existing staff and the local community to ensure the property’s continued success.
Licensing Approval:
The Nevada Gaming Control Board recently approved Century Casinos’ licensing as the new owner of Nugget Casino Resort. The resort is located in Sparks, Nevada, along Interstate 80.
Nugget Casino Resort Overview:
Nugget Casino Resort is a full-service resort offering 71,200 square feet of casino space with 892 slot machines and 29 table games. It boasts two hotel towers with 1,382 rooms, 114,500 square feet of convention space, an 8,555-seat outdoor amphitheater, and five dining venues.
Portfolio and Pro Forma Figures:
This acquisition strengthens Century Casinos’ portfolio, which now comprises 18 casinos, 6,955 gaming machines, 249 table games, and over 3,100 full-time equivalent employees. On a pro forma basis, considering the acquisition from January 1, 2022, the company’s net operating revenue and adjusted EBITDA for the year ending December 31, 2022, would have been $529.6 million and $129.9 million, respectively.
Financial Advisory:
Goldman Sachs & Co. LLC acted as the sole financial advisor to Century Casinos for this acquisition, demonstrating the company’s commitment to strategic financial planning. Legal advisory services were provided by Faegre Drinker Biddle & Reath LLP.
Century Casinos’ successful acquisition of Nugget Casino Resort in Nevada marks a significant milestone for the company as it expands its footprint into a prominent gaming market. The company’s plans to enhance the resort’s offerings and its commitment to collaboration with the local community underscore its dedication to future success in this new venture.