TROPICANA ENTERTAINMENT INC. (OTCMKTS:TPCA) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement
Real Estate Purchase Agreement; Agreement and Plan of Merger
On April15, 2018, Tropicana Entertainment Inc., a Delaware corporation (the “Company”), entered into (i)a Real Estate Purchase Agreement (the “Real Estate Purchase Agreement”) with GLP Capital, L.P., a Pennsylvania limited partnership (“GLP”), and (ii)an Agreement and Plan of Merger (the “Merger Agreement”) with Eldorado Resorts,Inc., a Nevada corporation (“Parent”), Delta Merger Sub,Inc., a Delaware corporation (“Merger Sub”), and GLP, to which, as more fully described below, the Company has agreed to sell its real estate assets to GLP and its gaming and hotel operations to Parent for an aggregate consideration of approximately $1.85 billion in cash, which amount is subject to adjustment.
Subject to the terms of the Real Estate Purchase Agreement, the Company has agreed to sell the real property assets held by its subsidiaries, other than the Company’s operations and subsidiaries located in Aruba (the “Aruba Operations”), to GLP (the “Real Estate Purchase”) for a purchase price of $1.21 billion (the “Real Estate Purchase Price”). Immediately following the Real Estate Purchase, Merger Sub will be merged with and into the Company, with the Company continuing as the surviving corporation in the merger (the “Merger”). Following the consummation of the Merger, the Company will be a wholly-owned subsidiary of Parent.
In connection with the transactions contemplated by the Real Estate Purchase Agreement and the Merger Agreement, the Company has agreed to use its reasonable efforts to cause the Aruba Operations to be distributed, transferred or disposed of by the Company prior to the closing of the transactions contemplated by the Real Estate Purchase Agreement and the Merger Agreement, which could include the spin-off of the Aruba Operations to its stockholders.
Subject to the terms of the Merger Agreement, at the effective time of the merger (the “Effective Time”), each share of the Company’s common stock, par value $0.01 per share (the “Common Stock”), issued and outstanding immediately prior to the Effective Time (other than shares owned by holders who have exercised their appraisal rights under Delaware law) will be cancelled and converted into the right to receive the per share merger consideration. Subject to other adjustments not expected to be material, the per share merger consideration, which is payable in cash, is determined as follows:
(a) $640 million, which reflects the consideration paid by Parent in respect of the Merger;
(b) plus $1.21 billion, which reflects the Real Estate Purchase Price received by the Company;
(c) plus the amount of net proceeds received by the Company in connection with the distribution, transfer or disposition of its Aruba Operations;
(d) minus the Real Estate Purchase Tax Amount (as defined in the Merger Agreement);