Bally’s Corporation Raises $671.4 million through share offering. It aims to use a part of the money to purchase Gamesys Group. (Image Source: Ballys.com)
Bally’s Corporation, a renowned casino operator has been able to raise 671.4 million dollars via a share offering. Part of the money will now be used towards the acquisition of Gamesys Group. Bally’s Corporation issued 12.65 million shares of common stock in total. This includes 1,650,000 shares issued to pursue the complete exercise of the over-allotment option by the underwriter. The new common stock underwritten public offering will now be to the public at 55 dollars each.
The total proceeds accumulated before the expenses but after all deductions were 671.4 million dollars (559.3 million Euros/ 481.9 million Pounds). This amount exceeds 600 million dollars which was initially set as the target. The fund will now be used to finance a part of the cash consideration that will be paid to Gamesys’ shareholders as part of the acquisition deal previously announced.
Agreement Sealed Last Month
The boards of Gamesys and Bally’s Corporation reached an agreement on a merger last month. Bally’s Corporation will acquire Gamesys via the amalgamation for 2 billion pounds. Both companies announced more details on the agreement last week. It was deduced that both Gamesys and Bally’s Corporation aims to create a top online and retail gambling business in the United States and beyond.
It was also revealed that Bally’s Corporation has agreed in the deal to pay 25.77 dollars (18.5 pounds) per Gamesys share. However, shareholders of Gamesys can swap their holding for 0.343 new Bally’s Corporation shares per Gamesys share. If the deal does not scale through, Bally’s Corporation is expected to use the net income from the offering for general business purposes such as investments, acquisitions, capital expenditures, debt repayment, repurchases of its common stock among others.
About Bally’s Corporation
Bally’s is a Lincoln-based gaming company that operates and owns 12 racetrack properties and casinos in Rhode Island, New Jersey, Mississippi, Louisiana, and Delware states in the US. It also owns thirteen authorized OTB licenses in Colorado. Bally’s Corporation was established in 2004 as BLB investors. The company later changed its name to Twins River Worldwide Holdings. However, it changed its name to Bally’s Corporation in 2020 when it acquired the rights to rights to Bally’s casino trademark.
Bally’s casino trademark is a brand first launched by Bally Manufacturing and has been in existence for long. Bally’s Corporation currently boasts 3,342 hotel rooms, 460 games tables, 13,308 slots, and 6,000 employees. The company already has plans to acquire Rock Island, IL (Jumer’s Casino and Hotel), and Evansville, IN (Tropicana Evansville) to bring the number of casinos it owns and manages to 15 across 11 states.
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