In a glimpse of what’s new in the gambling world another big shopping center awaits Macau.
As the earning period gains momentum, the gambling industry is now full set on managing their revenues and portfolio. Penn National Gaming Incorporated recently handed in a review of its Plainville slot parlor project over in Massachusetts. While Melco Crown Entertainment Ltd, in its bid to help project Macau’s image as a world-class tourism and leisure hub, divulged its plans to open a retail resort at Studio City in Macau. Also, a subsidiary of Isle of Capri Casinos Inc. just revealed the outcome of its cash tender offer. And, lastly, Las Vegas Sands Corp’s subsidiary is set to steady its balance sheet with an extra term loan.
Plainridge Park Casino will open Plainville slot parlor inJune, the first in Pennsylvania
Melco Crown has clinched a deal with Taubman Asia, a subsidiary of U.S. mall REIT, Taubman Centers, Inc.. It plans to open The Boulevard at Studio City, an entertainment and leisure retail and gaming resort in Macau with cinemas. It will offer a one-of-a kind engaging retail entertainment hub, giving a wide range of choices to shoppers in Macau.
This announcement comes even after Melco Crown reported have a decline in share prices of around 7.5%. The retail center will imitate the grandeur glamor of New York’s Times Square and Hollywood’s Beverly Hills, as far as shopping and entertainment is concerned. Both the Boulevard at Studio City along with the Studio City integrated resort are set to open in 2015 Q3.
Meanwhile, four years after the state legalized Las Vegas-style casino gambling, under US gambling laws, Penn National Gaming has received the plans for its Plainville slot parlor project which will see the first slots parlor coming to the state if approved. It handed in the plan to the Massachusetts Gaming Commission recently. In the report to the regulator of, Plainridge Park still has the parlor featuring 1,250 slot machines but other parts of the plans have been modified.
The company announced that casino’s facilities will have an entertainment venue with a stage, dance floor, an oyster bar and a grille. The project which costs $225.00 million will be built at the Rhode Island border and is scheduled to open in June this year, which officials hope will create thousands of jobs and raise hundreds of millions of dollars in new revenue for the state. Massachusetts Gaming Commission said that the state will also need to take some steps before operations can start.
Pinnacle bid reached from Gaming and Leisure Properties
Pinnacle Entertainment Inc., a luxury casino company, said recently that Gaming and Leisure Properties, Inc. (GLPI),has proposed a substantial amount of money for its real estate. It has been reported that GLPI purchases real estate leased to casino operators. The new offer is valued at $40 a share, instead of a previous offer of $36 per share.
The high bid is GLPI’s way of tempting Pinnacle to accept its proposal. Just last year Pinnacle Entertainment had divulged plans to pull separate two public companies by 2016. the two public companies are a real-estate investment trust (REIT) and another company housing its casino operations.
If Pinnacle accepts the bid then REIT would be linked to Gaming and Leisure Properties, instead of being standalone business while Pinnacle’s operating company would be renting the enlarged Gaming and Leisure Properties. Gaming and Leisure Properties says it hopes to wrap up agreements by year end 2016. This will be in keeping with Pinnacle’s breakup plan deadline.
U.S. dollar equivalent $1 billion term loan for Sands China
Meanwhile, Sands China Ltd, a majority-subsidiary of Las Vegas Sands, is trying to convince lenders to fork out a massive loan which the subsidiary hopes to get by the end of April, 2015. If the term loan is granted it will reinforce the casino’s balance sheet and raise shareholders’ returns.
In other US gambling news it has been reported that Isle of Capri Casinos is advertising a tender offer for any and all of its outstanding 7.75% Senior Notes due 2019, which expired on Apr 13, 2015, at which time a total amount of of $237,832,000 of 2019 Notes had been validly tendered. The company has accepted to purchase all of the 2019 Notes that were submitted.
Under the terms of the offer, the company will make a cash payment to all holders who hand in their 2019 notes in the tender offer of $1,043.00 per $1,000 principal amount of 2019 notes tendered. They will also have the interest added. This does not comprise “the settlement date for a total cash payment of approximately $250 million”.
The company will finance the settlement for tendered and accepted notes with the net earnings from its issuance. This has been already announced. The sale of $150 million principal amount of its 5.875% senior notes is due in 2021. The company had newly priced an additional $150 million of its 5.875% senior notes scheduled for 2021.