Tropicana Entertainment Sold for $1.85 Million

Lloyd Doyle
April 16, 2018

Under the deal announced on Monday, six of the eight casino properties run by Tropicana will be sold by Icahn Enterprises LP (IEP.O) to real estate investment trust Gaming and Leisure Properties (GLPI.O) for $1.21 billion.

The agreement provides that Gaming and Leisure Properties will pay $1.21 billion, excluding taxes and expenses, for substantially all of Tropicana's real estate and enter into a master lease with Eldorado for the acquired real estate and that Eldorado will fund the remaining $640 million of cash consideration payable in the acquisition.

The transaction does not include Tropicana's Aruba asset, which will be disposed of as a condition of closing, according to the release. The Las Vegas company now owns and runs eight casinos and resorts.

Tropicana Entertainment will soon be under new ownership. These properties include approximately 7,900 slot machines, 265 table games and approximately 5,400 hotel rooms along with a number of dining, retail and entertainment amenities. Upon completion of all pending transactions, Eldorado's property portfolio will feature about 26,800 slot machines and VLTs, more than 800 table games and over 12,500 hotel rooms.

Chairman Carl Icahn said in a statement that he was proud of the success Icahn Enterprises had with Tropicana since acquiring the company a decade ago. Mr. Icahn has chaired Tropicana's board since 2010. The company revamped Tropicana's management team, hiring Tony Rodio as chief executive, and reinvested "every single penny" of profits back into the company, Mr. Icahn said in prepared remarks.

As it enters new gaming jurisdictions in New Jersey and Illinois, Eldorado described the seven Tropicana properties as in "good shape". It said the Aruba property was not included in the sale because Eldorado does not believe it would be worth acquiring.

The billionaire investor had reinvested more than $200 million into the Atlantic City property, insiders say, and Tropicana Atlantic City expanded into the nearby boutique hotel The Chelsea past year. That casino recently became the No. 2 casino in Atlantic City in terms of gambling revenue, trailing only the Borgata.

Other reports by Iphone Fresh

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