Century Casinos to Enter Reno Market with Nugget Casino Resort Buy


Century Casinos, Inc. has announced it has reached an agreement to acquire the Nugget Casino Resort in Sparks, Nevada. The purchase includes a 50% stake in Smooth Bourbon, LLC (“PropCo”) and 100% of Nugget Sparks, LLC (“OpCo”) for $195 million from Marnell Gaming, LLC. Century also picked up a five-year option to purchase the remaining 50% of PropCo for $105 million, plus 2% per annum. Marnell acquired the property in 2016.

$95 million of the total purchase price goes to PropCo which owns the land and the Nugget building. OpCo will pay PropCo $15 million per year on a lease to rent the property and land. Upon customary and regular approval of the Nevada Gaming Commission, the last $100 million will be paid to purchase the Nugget. Century’s acquisition of the operating company is expected to immediately accrete earnings and increase the company’s cash flow in a meaningful way.

The finance package for the purchase goes far beyond simply acquiring the brand and property. Goldman Sachs Bank USA has committed $350 million via a senior secured loan facility which will also add strength throughout the company’s balance sheet with a refinance of existing debt, provisions for general corporate expenses, and will provide $30 million in funds through a senior secured revolving credit facility.

Nugget a Perfect Fit for CTY Portfolio

In joint remarks, Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos said: “We have been looking at entering the Reno market for a long time, and we believe the Nugget is a perfect fit for our portfolio. We look forward to welcoming the great team at the Nugget to Century Casinos.

“We believe there is a lot of upside to this transaction and that we identified some areas of improvement to continue the Nugget’s growth. We expect the Nugget to seamlessly integrate and provide added synergies for Century Casinos’ US portfolio.

Nugget Casino Resort is located in Sparks, Nevada. The casino and hotel are situated on Interstate 80 within a couple of minutes of Reno-Tahoe International Airport, about three miles away.

As a full-service resort, the Nugget offers about 55,000 square feet of gaming space with nearly a thousand machines and 30 gaming tables, two hotel towers, 110,000 square feet of convention space, an outdoor amphitheater that seats over 8,000, a good variety of dining options, and several bars and lounges.

Will Be Century’s 10th North American Casino

According to a press release from Century Casinos, The Nugget Casino Resort had net operating revenue of $100.4 million and Adjusted EBITDA of $32.8 million based on preliminary results for the year ended December 31, 2021.

When this deal is completed, the CTY portfolio of properties will include 10 casinos in North America hosting about 6,700 machines and 140 gaming tables.

Century Casinos relied entirely on Goldman Sachs & Co. LLC as the financial advisor in connection with the acquisition.


Century Casinos Enters into Definitive Agreement to Acquire Nugget Casino Resort in Nevada, CTY News, February 23, 2022

The post Century Casinos to Enter Reno Market with Nugget Casino Resort Buy appeared first on Casino News Daily.

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