Shares of Bally’s Corp.
BALY,
-10.12%
tumbled 8.6% in premarket trading Tuesday, after the casino operator said it has launched a public offering of $600 million worth of common stock, while also providing an upbeat revenue outlook. The company said it was also offering $250 million worth of its tangible equity units. The company plans to use the proceeds from the offerings to help pay for the previously announced Gamesys Group PLC merger agreement. The $600 million common stock offering represents about 32% of the company’s market capitalization of $1.88 billion as of Monday’s close. Separately, Bally’s said it expects first-quarter revenue to be “greater than” $185.0 million, which compares with the FactSet consensus of $156.5 million, as “increased demand assisted by a relaxation of COVID-19 restrictions” boosted results toward the end of the quarter. Bally’s also announced an agreement to buy the Tropicana Las Vegas casino from Gaming & Leisure Properties Inc.
GLPI,
+0.69%
in a deal valued at $308 million. The stock has rallied 18.2% over the past three months through Monday, while the S&P 500
SPX,
+0.12%
has gained 8.4%.
