WYOMISSING, PA — Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) has announced a $225 million commitment as the lead real estate financing partner for Caesars Republic Sonoma County, a new integrated resort set to replace the current River Rock Casino in California’s wine country.
Under agreements with Caesars Entertainment (NASDAQ: CZR) and the Dry Creek Rancheria Band of Pomo Indians, GLPI will initially serve as lender with a $180 million delayed draw term loan priced at a fixed rate of 12.50% and a $45 million term loan B with a yield to maturity of 13.95%. The blended interest rate for the financing is expected to be 12.79%.
At or before maturity of the six-year loans, Dry Creek will lease the property to an affiliate of GLPI for a 45-year term, with rent set at no less than $112.5 million. GLPI will then sublease the property back to Dry Creek, with annual rent based on a 9.75% cap rate.
Construction on the resort began in August. Once complete, the property will feature a 100-room hotel, four restaurants, three bars, a luxury spa, pool, and fitness center, alongside a gaming floor with 1,000 slot machines and 28 table games. The resort is expected to open in summer 2027, with the existing casino remaining operational during development.
“We are proud to be supporting Dry Creek Rancheria and initiating a relationship with the tribe in our role as the lead real estate financing partner for Caesars Republic Sonoma County,” said Peter Carlino, Chairman and CEO of GLPI. “Through this project, we are also extending our long-term partnership with Caesars Entertainment, which reflects our corporate focus on working collaboratively with the industry’s best gaming operators, to enable them to achieve their growth and development goals.”
Carlino emphasized that the project underscores GLPI’s strategy to pursue tribal casino financing and expand its footprint in new markets. The financing arrangement, he noted, provides Dry Creek with a lower-cost option while ensuring GLPI a long-term lease guarantee and a significant presence in California.
The financing package was arranged with support from Citizens Bank, N.A., while TFA Capital Partners served as financial advisor to GLPI.
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