Penn National Gaming is under contract to acquire the operations of Margaritaville Resort Casino in Bossier City, Louisiana, for approximately $115m in a all-cash deal. Simultaneous with the closing of the transaction, Penn National will enter into a triple net lease agreement with VICI Properties for the Margaritaville facility. The lease will have an initial annual rent of approximately $23m and an initial term of 15 years, with four five-year renewal options. Once the Margaritaville deal is completed, Penn National’s portfolio of regional gaming facilities will increase to 40 properties in 18 jurisdictions. The transaction, expected to close in the second half of 2018, is subject to the approval of the Louisiana Gaming Control Board.
