On Tuesday, Shares of MGM Resorts International (NYSE:MGM), gained 4.27% to $19.05.
Eldorado Resorts, Inc. and MGM Resorts International, declared that they have reached a definitive agreement for Eldorado to acquire MGM’s 50 percent interest in the Silver Legacy Resort Casino Reno, in addition to all of the assets of Circus Circus Reno, for total consideration of $72.5 million cash, subject to a working capital adjustment. In addition, ERI anticipates that it will repay amounts outstanding under the Silver Legacy credit facility, of which about $60 million was outstanding at March 31, 2015 on a net debt basis. ERI and its associates already own the other 50 percent interest in Silver Legacy. The acquisitions are not subject to a financing condition and the purchase price and repayment of the Silver Legacy credit facility are predictable to be funded by Eldorado through cash on hand and future capital market or financing transactions.
Gary Carano, Chairman and Chief Executive Officer of Eldorado, commented, “The acquisition of these well-established properties represents a noteworthy growth and expansion opportunity for Eldorado and is consistent with our strategy to enhance shareholder value by structuring transactions that are plannedally and economically attractive. The acquisition is predictable to be accretive to our operating results upon closing, builds the critical mass of our gaming operations and fortifies our position in the increasingly attractive Reno gaming market.”
The projected transaction will enhance Eldorado’s property portfolio to seven wholly-owned and operated facilities in five markets with a total of about 10,850 slot machines and VLTs, about 310 table games, about 4,850 hotel rooms, about 36 dining options, three pari-mutuel racing facilities and about 8,600 team members.
MGM Resorts International, through its auxiliaries, owns and/or operates casino resorts. It operates through two segments, Wholly Owned Domestic Resorts and MGM China. The company’s casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities.
Shares of EnteroMedics Inc. (NASDAQ:ETRM), declined -33.57% to $0.38, during its last trading session, hitting its lowest level.
EnteroMedics Inc., declared the pricing of its formerly declared public offering of 32,000,000 units. Each unit comprises of one share of common stock and one Series A warrant to purchase one share of common stock at a purchase price of $0.50 per unit. Investors whose purchase of units in the offering would result in them beneficially owning more than the initial beneficial ownership limitation to be comprised of in the warrants following the consummation of the offering will have the opportunity to acquire units with Series C pre-funded warrants substituted for any common stock they would have otherwise attained over the initial beneficial ownership limitation, paying the same price of $0.50 per unit. The Series A warrants will be exercisable right away and will expire 42 months after their date of issuance at an exercise price of $0.60 per share. The pre-funded Series C warrants will be exercisable right away and will expire five years following issuance.
Canaccord Genuity is acting as sole book-running manager and Craig-Hallum Capital Group is acting as co-manager for the offering. Northland Securities and Roth Capital Partners served as financial advisors to the Company in connection with this transaction.
The offering is predictable to close on or about July 8, 2015, subject to customary closing conditions counting, but not limited to, the receipt of all necessary regulatory approvals, counting the approvals of the NASDAQ Capital Market.
EnteroMedics Inc., a medical device company, focuses on the design and development of devices that use neuroblocking technology to treat obesity, metabolic diseases, and other gastrointestinal disorders. The company’s proprietary neuroblocking technology is designed to intermittently block the vagus nerve using electrical impulses.
Finally, Outfront Media Inc. (NYSE:OUT), ended its last trade with 4.80% gain, and closed at $25.78, hitting its lowest level.
OUTFRONT Media, declared that it will report results for the quarter ended June 30, 2015 after the market closes on Thursday, August 6, 2015.
The Company will host a conference call to talk about the results on August 6, 2015 at 4:30 p.m. Eastern Time. The conference call number is 888-510-1783 (U.S. callers) and 719-457-2633 (International callers) and the passcode for both is 7765971.
OUTFRONT Media Inc. provides advertising space on out-of-home advertising structures and sites in the United States, Canada, and Latin America. Its portfolio primarily comprises of billboard displays, which are principally located on the heavily traveled highways and roadways; and transit advertising displays with multi-year contracts with municipalities in various cities across the United States.
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