Boyd Gaming prepares for multiple acquisitions
The company has gone into preparation-mode
The regional casino operator is making sure it has plenty of accessible credit in order to make acquisitions, due to sports betting being legalised throughout the United States.
Boyd Gaming has just upped a debt offering from $500 million to $700 million and announced that a portion of the proceeds will be used for acquisitions, The Motley Fool reports.
Presently, the firm owns or operates 24 gaming properties in seven states. Last December, the firm entered into a partnership with Penn National Gaming to buy four properties after Penn closed its acquisition of Pinnacle Entertainment, and then two days later agreed to acquire Valley Forge Casino Resort in King of Prussia, Pennsylvania. Just this month, it closed the acquisition of Lattner Entertainment, a bar and tavern gaming operator with some 220 locations across Illinois.
Boyd retains one of the largest sports books in Nevada, where betting on sports has been legal for decades, proving the company to be well-established in the sports betting sector.
Boyd’s aim is to cover as many markets as possible, with CEO Keith Smith saying the casino operator was “fully prepared to take advantage of” sports gambling as it spreads across the country.
Boyd’s offering priced $700 million in senior notes maturing on Aug. 15, 2026, bearing an interest rate of 6% annually. The offering is expected to close on June 25.
The casino operator stated that it anticipates receiving around $689 million in net proceeds, which are intended to be used for working capital and general corporate purposes, that includes acquisitions, reducing debt, and expansion. Although, it is also planning to pursue a $230 million increase in its revolving credit facility later this year.
Since Boyd Gaming continues to geographically diversify its operations, especially while sports betting opens new potential streams of revenue, the gaming operator is likely eyeing outlets that it’s not currently in, and that could be a bet that pays off big.
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