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Eldorado updates on Tropicana deal

Published 04/16/2018, 07:30 AM
© Reuters.  Eldorado updates on Tropicana deal
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  • Eldorado's (NASDAQ:ERI) says the purchase price of Tropicana's gaming assets after accounting for net cash on hand and cash flow generated from operations through closing represents an estimated trailing 12-months EBITDA multiple of ~6.6X. The purchase price multiple is expected to be below 5.0X if the expected $40M in cost synergies are factored in.
  • The company intends to fund the transaction consideration of approximately $640M and repay Tropicana debt with cash generated from current operations, proceeds from pending asset sales, Tropicana’s cash on hand, cash flow generated from Tropicana operations through closing and $600M of committed debt financing from JPMorgan (NYSE:JPM).
  • Previously: Tropicana Entertainment sold off in separate deals (April 16)
  • Now read: Red Rock Resorts: Don't Discount Regional Gaming


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