Gaming and Leisure furthers partnership with long-term financing for Caesars

Gaming and Leisure Properties (GLPI) announced its $225M commitment to serve as the lead real estate financing partner for a new, integrated resort, Caesars Republic Sonoma County, that will be developed on the site of the current River Rock Casino. Pursuant to its agreements with Caesars Entertainment (CZR) and the Dry Creek Rancheria Band of Pomo Indians, GLPI will initially act as a lender to the project, with a delayed draw term loan of $180 million, priced at a fixed rate of 12.50%, and a term loan B of $45 million, with a current yield to maturity of 13.95%. The blended interest rate of GLPI’s financing is expected to approximate 12.79%. Upon, or prior to, maturity of the 6-year term loans, Dry Creek will lease the property to an affiliate of GLPI for a 45-year term, for an amount no less than $112.5 million, and GLPI will sublease the property back to an affiliate of Dry Creek. Annual rent on the sublease will be based on a cap rate of 9.75%.