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Carl Icahn sells Tropicana casinos in $1.85 billion deal

Carl Icahn sells Tropicana casinos in $1.85 billion deal

(ERI) announced a definitive agreement to acquire Tropicana Entertainment a cash transaction that is valued at $1.85 billion.

Billionaire activist investor Carl Icahn gives an interview on FOX Business Network's Neil Cavuto show in New York February 11, 2014.

Tropicana operates casino and entertainment properties in the USA, including its flagship Tropicana Atlantic City, and a casino-resort in Aruba.

The sale includes 7,900 slot machines, 265 table games and about 5,400 hotel rooms, as well as restaurant, retail and entertainment hot spots.

Eldorado will also get the Tropicana Laughlin Hotel and Casino and the MontBleu Casino Resort & Spa in South Lake Tahoe, Tropicana Evansville in Indiana, Belle of Baton Rouge Casino & Hotel in Louisiana, Trop Casino Greenville in MS and Lumière Place in Missouri. This tremendous financial turnaround would not have been possible without it.

Reno-based Eldorado owns and operates twenty properties in 10 USA states, including Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, Pennsylvania and West Virginia. "I would also like to thank the thousands of Tropicana team members whose hard work, dedication, and commitment to excellence also played a huge part in our accomplishment".

Carl Icahn sells Tropicana casinos in $1.85 billion deal
Carl Icahn sells Tropicana casinos in $1.85 billion deal

The Illinois transaction is expected to close in the fourth quarter of 2018, subject to regulatory approvals and other customary closing conditions and is subject to a customary working capital adjustment.

The billionaire investor had reinvested more than $200 million into the Atlantic City property, insiders say, and Tropicana Atlantic City expanded into the nearby boutique hotel The Chelsea previous year.

Eldorado will enter a master lease agreement with Gaming and Leisure Properties, initially paying rent of $110 million to operate the acquired hotel-casinos in the first year.

Eldorado also announced Monday it is buying the Grand Victoria Casino in Elgin, Illinois from MGM Resorts International for $327.5 million in cash. Overall, the Tropicana portfolio is in good shape and we have no immediate significant capex plans for the properties.

Additionally, Icahn previous year sold the Trump Taj Mahal in Atlantic City to Hard Rock International, which is redeveloping the site as the Hard Rock Hotel & Casino Atlantic City.

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