Lucky Strike acquiring real estate underlying 58 locations for $306M

Lucky Strike (LUCK) Entertainment announces “acquisition of the real estate underlying 58 locations. Lucky Strike is the current operator of each location and will remain so following the close of the transaction. The $306 million acquisition transforms the Company’s cost structure by reducing annual rent obligations and unlocking powerful financial and operational flexibility. Previously leased, these high-traffic locations generated approximately $80 million in annualized EBITDAR against $21 million in rent obligations (subject to 15% escalations every five years). By transitioning from renter to owner on existing Company venues, Lucky Strike captures immediate value, eliminates future lease inflation risk, and strengthens control over strategic assets in key markets. The acquisition was financed through a $230 million bridge facility, availability under Lucky Strike’s revolving credit line, and cash on hand. The transaction is expected to be deleveraging and demonstrates a disciplined capital deployment strategy with a focus on high-ROI outcomes that increase optionality.”