Bally's Corporation Secures Expanded Credit, Advances $735 Million Sale-Leaseback Transaction
## Bally's Fortifies Financial Position with Credit Expansion and Asset Deal
U.S. casino operator **Bally's Corporation** (NYSE: **BALY**) announced significant strides in its financial restructuring, securing expanded revolving credit facility commitments and advancing a substantial sale-leaseback transaction. These moves aim to bolster the company's liquidity and address its considerable debt load, prompting a notable uptick in its stock performance.
## Credit Commitments Increased, Key Asset Transaction Advances
**Bally's** has successfully secured additional commitments to its revolving credit facility (RCF), increasing the extended maturity tranche to **$510 million** with a new maturity date of **October 1, 2028**. This expansion, along with existing RCF lenders, brings the aggregate commitments to **$670 million**. Crucially, these lenders have provided their consent for the proposed sale and leaseback (SLB) of the company's **Twin River Lincoln Casino Resort** to **Gaming and Leisure Properties Inc.** (**GLPI**: Nasdaq). This transaction is projected to generate **$735 million** in cash proceeds before transaction expenses and taxes. To fully proceed, Bally's must still obtain similar consents from holders of approximately **$600 million** in term loans, representing about 32% of currently outstanding amounts, in addition to regulatory approvals for both the amended RCF financing and the proposed SLB transaction.
## Strategic Debt Reduction and Balance Sheet Impact
Upon the completion of the **Twin River Lincoln Casino Resort** sale-leaseback, **Bally's** has committed to reducing its secured debt and credit facilities by an aggregate **$500 million**. This includes a permanent 7.5% reduction of revolving credit facility commitments, decreasing them to approximately **$574 million**. Following this, the company plans proportional prepayments on its outstanding term loans and first lien notes. **Bally's** anticipates that these actions will lower the combined outstanding balances of its term loans and first lien notes from approximately **$2.4 billion** to **$1.92 billion**, marking a near 19% reduction in this segment of its debt structure. The company currently operates with a market capitalization of **$559.8 million** but also carries a substantial total debt burden of approximately **$5.74 billion** and a concerning current ratio of **0.49**, indicating that short-term obligations exceed liquid assets.
## Market Reaction and Broader Implications
Shares of **Bally's Corporation** (BALY) reacted positively to the news, advancing **5.6%** in afternoon trading and closing the day up **5%** at **$10.49**. This immediate market response signals investor approval for the company's proactive measures to manage its debt and enhance financial flexibility. Despite today's gains, **BALY** shares have experienced significant volatility, with over 53 moves greater than 5% in the last year. The stock remains down **46%** year-to-date and trades **52.4%** below its 52-week high of **$22.07** recorded in November 2024. The strategic divestment and refinancing efforts underscore a broader industry trend among gaming operators to optimize capital structures and focus on core growth initiatives.
## Future Outlook and Strategic Reallocation
Looking ahead, the successful execution of these financial maneuvers is critical for **Bally's** as it continues to pursue other strategic objectives. The company is progressing with the previously announced **€2.7 billion** sale of its **International Interactive business** to **Intralot S.A.**, a transaction expected to close in the fourth quarter of 2025. This deal is anticipated to provide **Bally's** with approximately **€1.5 billion** in cash, with the remainder paid in **Intralot** stock, positioning Bally's to become the majority shareholder of **Intralot**. The proceeds from the International Interactive unit sale are slated for reallocation to fund land-based casino developments in both the U.S. and Australia, underscoring Bally's intent to refocus its operational footprint and leverage enhanced liquidity for future growth. Investors will be closely monitoring the remaining lender consents and regulatory approvals required for the **Twin River Lincoln Casino Resort** sale-leaseback, as well as the progress of the **Intralot** transaction, as these are key determinants of Bally's mid-term financial health and strategic direction.
