George Papanier, President and Chief Executive Officer of Bally's Corporation, said, 'Landing a preeminent spot on the Las Vegas Strip is a key step for us.
Bally's and GLPI have agreed to use commercially reasonable efforts to negotiate and enter into definitive documents with respect to these transactions as promptly as practicable in order to fully reflect the contemplated terms. The transaction is expected to be accretive to Bally's shareholders long-term and will require no cash outlay from Bally's at closing. The lease will have initial annual fixed rent of $12 million, subject to increase over time. Bally's and GLPI will also will enter into a sale-and-leaseback transaction relating to Bally's Black Hawk, CO and Rock Island, IL casino properties for a cash purchase price of $150 million payable by GLPI. In addition, Bally's has agreed to lease the land underlying the Tropicana property from GLPI for an initial term of 50 years at annual rent of $10.5 million, subject to increase over time. The purchase price for the Tropicana property's non-land assets is $150 million.
