RENO, Nev. (KRNV & MyNews4.com) -- MTR Gaming Group, Inc. and Eldorado Resorts, LLC today announced that they have entered into a definitive agreement under which MTR Gaming Group will combine with the parent company of Eldorado Resorts, LLC in a stock merger.
As part of the transaction, a cash election option will be offered at $5.15 per share for up to 5.8 million shares to MTR Gaming’s current stockholders. MTR Gaming’s remaining common shares will be exchanged for shares in the combined new company. The combined new company will remain publicly traded and be named Eldorado Resorts, Inc.
Together, the new company will operate six properties across five jurisdictions with 9,968 slot machines and video lottery terminals, 283 table games and 3,282 hotel rooms. The combination will create a regional gaming operator with LTM pro forma annual net revenues and EBITDA of $832.6 million and $158.6 million, respectively, as of June 30, 2013. Based on the transaction value of $5.15 per share, the combined new company will have a pro forma enterprise value of approximately $1.0 billion.