Golden Entertainment, Inc. (NASDAQ: GDEN) began Thursday sharply higher. The company, an operator of a diversified entertainment platform of gaming and hospitality assets, announced today that it entered into a definitive agreement to sell its operating assets to Blake L. Sartini and affiliates and seven of its casino real estate assets to VICI Properties Inc. (NYSE: VICI) in a sale-leaseback transaction. Golden stockholders will receive total consideration of a fixed exchange ratio of 0.902 shares of VICI common stock for the sale of seven casino real estate assets and a cash distribution with proceeds from Blake Sartini of $2.75 for each share of Golden stock held at the closing of the transaction.
The $30.00 value of consideration at signing represents a 41% premium to Golden’s closing share price on November 5. The Company will continue to pay shareholders regular quarterly cash dividends of $0.25 per share through the close of the transaction.
In conjunction with the transaction VICI will assume and repay up to $426 million of the outstanding debt under the Company’s Senior Secured Credit Facility. Santander has provided Blake Sartini a debt financing commitment to support the cash portion of the price, any excess debt and fees and expenses.
GDEN shares began the session higher $8.46, or 39.9% to $29.69, while shares in VICI nicked higher a penny to $30.18.
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