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Gaming & Leisure Properties Completes Acquisition of Tropicana Las Vegas and Provides Update on April Rent Collections
Tropicana Purchase Agreement and Lease
Pursuant to the terms of the transaction with Penn National, GLPI will conduct a sale process with respect to the Tropicana Las Vegas (including the casino and hotel business). If a definitive agreement for the sale is entered into during the first year of the sale process,
Simultaneous with GLPI’s acquisition of the Tropicana, the Company entered into a lease with Penn National for the Tropicana for nominal annual rent and Penn National will continue to operate the property for two years (subject to three one-year extensions at GLPI’s option) or until the Tropicana is sold, whichever is earlier. The lease is a triple net lease relieving the Company from carrying and other costs at the property during the lease term.
In conjunction with the transaction, the Company’s credit facility lenders offered broad cooperation without a fee and with support of 83% to amend the revenue definition included in the Company’s credit agreement to allow non-cash rent to be included in all covenant calculations as cash equivalents.
While all of GLPI’s tenants’ properties as well as the Company’s two TRS properties were closed in mid-March as a result of COVID-19 related precautions, the Company collected 98.6% of contractual April rent, including amounts paid by Penn National.
GLPI's Chairman and Chief Executive Officer,
GLPI is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, including our expectations regarding the collection of future rent receipts in 2020. Forward-looking statements can be identified by the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “intends,” “may,” “will,” “should” or “anticipates” or the negative or other variation of these or similar words, or by discussions of future events, strategies or risks and uncertainties. Such forward looking statements are inherently subject to risks, uncertainties and assumptions about GLPI and its subsidiaries, including risks related to the following: the effect of pandemics such as COVID-19 on the business operations of GLPI’s tenants and their continued ability to pay rent in a timely manner or at all; GLPI’s ability to sell the Tropicana, including receipt of all required regulatory approvals, or other delays or impediments to completing the proposed transaction; GLPI's ability to maintain its status as a REIT; GLPI’s ability to access capital through debt and equity markets in amounts and at rates and costs acceptable to GLPI; the impact of our substantial indebtedness on our future operations; changes in the
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Source: Gaming and Leisure Properties, Inc.