Eldorado Resorts refinances debt in ‘pivotal’ third quarter

By Lisa Kerner

Charlotte, N.C., Oct. 30 – Eldorado Resorts, Inc.’s third quarter was a “pivotal period” for the company, as it “announced the planned acquisition of Silver Legacy and Circus Circus Reno, completed our refinancing and continued to make significant progress on realizing our targeted annual expense-reduction initiatives,” said president Tom Reeg.

The acquisition of Silver Legacy and Circus Circus Reno will be immediately accretive to the company’s free cash flow upon closing and will reduce Eldorado’s leverage.

“In addition, the comprehensive balance sheet refinancing reduced our annual interest expense by approximately $35 million, which provides us added flexibility to continue to pursue additional opportunities for growth,” Reeg said.

The Reno, Nev.-based casino entertainment company reviewed its third-quarter financial results during a conference call on Friday.

As of Sept. 30, Eldorado had $48.8 million of cash and cash equivalents and $57.1 million of restricted cash, which included $55.5 million of escrow cash related to the proposed Silver Legacy and Circus Circus Reno acquisition.

Debt totaled about $817 million, including $18 million outstanding on the company’s revolving credit facility, according to the earnings news release.

In July, Eldorado refinanced its outstanding debt by issuing $375 million of 7% senior notes due in 2023. The company also entered into a new credit facility with a $425 million term loan due in 2022 that bears interest at a rate of Libor plus 325 basis points as well as a $150 million revolving credit facility that matures in 2020.

Also in July, Eldorado filed a registration statement with the Securities and Exchange Commission to offer up to $80 million in common stock.

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