Milbank, Tweed, Hadley & McCloy LLP advised Margaritaville Resort Casino in connection with the Casino's $376 million acquisition by Gaming REIT Vici Properties Inc. (Vici) and casino operator Penn National Gaming Inc. (Penn). The Louisiana-based Casino is currently owned by Bossier Casino Venture Inc.
Under separate agreements, Vici will acquire Margaritaville's land and real estate assets for $261 million and Penn National will acquire the Casino's operating assets for $115 million. Penn National will also sign a 15-year triple-net lease with Vici, with four five-year renewal options. Opened in 2013, Margaritaville includes a 395-key hotel, 26,500 square feet of casino space, a 1,000-seat theater, parking and dining options on four acres of fee land, and also encompasses 30 acres of leased land.
The Milbank team was led by Global Corporate partner Casey Fleck with associates Jason Anderson, Natalie Chitayat, and Kim Covington; Real Estate associate Raad Shawaf; Executive Compensation and Employee Benefits partner Mike Shah with associates James Beebe and Christina Skaliks; Tax partner Russell Kestenbaum with associate Jules Mugema; and Antitrust partner Fiona Schaeffer with Joseph Rafferty.
The deal is subject to regulatory approval by the Louisiana Gaming Control Board and the satisfaction of additional customary closing conditions.