#Canada #Alberta #Century Casinos #Century Mile #Century Downs

Century Casinos Sells Alberta Racetracks

In a strategic move to streamline operations, Century Casinos, Inc. has entered into a definitive agreement to sell Century Mile Racetrack and Casino in Edmonton and Century Downs Racetrack and Casino in Calgary, both located in Alberta, Canada. The transaction is valued at approximately $16.4 million CAD (around $11.6 million USD based on exchange rates), representing a significant multiple of 6.1 times the expected EBITDA for the fiscal year 2025.

Century Casinos owns full equity in Century Mile and a 75% stake in Century Downs, with the remaining 25% held by non-controlling partners. Both racetracks are situated on properties owned by VICI Properties Inc., which holds the real estate in a leasing arrangement with Century Casinos.

As part of the sales process, the operating agreement will be amended to exclude these two racetracks from the existing triple-net master lease, allowing Highfield Investment Group to acquire them as new tenants. This transition will lead to an approximate annual rent reduction of $7.5 million CAD for Century Casinos, enhancing its financial landscape.

The Co-CEOs of Century Casinos, Erwin Haitzmann and Peter Hoetzinger, stated, "This sale is a critical step in our ongoing strategic review process. It allows us to refocus our efforts on our U.S. properties, where we see stronger growth opportunities. This transaction enhances our operational efficiency and financial flexibility as we shift our concentration toward our core U.S. assets."

Financial Implications and Future Outlook

The proceeds from the sale are intended to address the company's existing debt, thereby improving its overall financial standing and lease-adjusted net leverage. Plans are in place for the transaction to close either in the fourth quarter of 2026 or the first quarter of 2027, pending necessary regulatory approvals and other customary closing conditions.

Macquarie Capital has provided exclusive financial advisory services for the transaction while Field Law has served as legal counsel.

About Century Casinos

Century Casinos operates in several locations across the United States and internationally, offering various gaming and hospitality experiences. In the U.S., it manages properties in states such as West Virginia, Maryland, Missouri, Colorado, and Nevada, and it runs operations in Canada and Poland as well.

Trading on the Nasdaq Capital Market under the symbol CNTY, Century Casinos continues to pursue new developments and refine its operations to maximize shareholder value and organizational growth.

Stay tuned for more developments as the completion of this sale approaches, which is expected to significantly reshape Century Casinos' operational strategy and financial health.