Any day now, St. Louis, Missouri-based Isle of Capri Casinos Inc. could be acquired by casino real estate owner Gaming and Leisure Properties Inc. However, Isle adviser Peter J. Solomon, a boutique investment bank, said the deal still is far from done. Isle owners—the family of founder Bernard Goldstein, who own 40 percent of Isle’s stock–renewed talks with Gaming and Leisure after unsuccessfully negotiating with several potential buyers in February.
Real estate investment trust Gaming and Leisure Properties was created when Penn National Gaming Inc. spun off its real estate assets in 2013. Since then, the REIT has aggressively sought casino properties to expand its real estate holdings.
Isle’s stock has dropped more than 11 percent this year, but recently has run up more than 20 percent due to speculation about the potential sale.
Isle has an enterprise value of $ 1.29 billion, comprised of $969 million in debt and $325 million in equity value. It owns and operates 15 gaming and entertainment properties in Mississippi, Louisiana, Iowa, Missouri, Colorado, Pennsylvania and Florida.
If the transaction is finalized, Gaming and Leisure most likely would locate an operating partner for each Isle gaming operation in order to recoup some of its purchase price. Also, the transaction would require shareholder approval and gaming-license transfer approval in many jurisdictions.
