Century Casinos, Inc. Enters into Definitive Agreement to Sell Century Mile and Century Downs Racetracks in Alberta, Canada
The planned lease change would shift rent obligations for both Alberta properties to Highfield.
Sentiment and the balance of points
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Rhea-AI Summary
Century Casinos (CNTY) agreed to sell its Alberta racetrack gaming operations to Highfield Investment Group for approximately $16.4 million. The agreement covers Century Mile in Edmonton and Century Downs in Calgary. The price is CAD 23.2 million and represents 6.1x FY 2025 EBITDA. Century owns 100% of Century Mile and 75% of Century Downs; other partners hold the remaining 25%.
VICI Properties (VICI) subsidiaries own both properties. At closing, Century and VICI subsidiaries will remove them from Century's master lease, and Highfield will assume the associated rent obligations. Century's annual rent will fall by approximately $7.5 million (CAD 10.7 million). Century intends to use the proceeds to reduce debt and expects lower pro forma lease-adjusted net leverage. Closing is expected in Q4 2026 or Q1 2027, subject to regulatory approvals and other closing conditions.
Positive
- Approximately $16.4 million sale price, or CAD 23.2 million, represents 6.1x FY 2025 EBITDA.
- Annual rent will fall by approximately $7.5 million (CAD 10.7 million) when the properties leave Century's lease.
- Century intends to use the sale proceeds to reduce indebtedness.
- Century expects the transaction to reduce pro forma lease-adjusted net leverage.
- Century says the sale supports its plan to concentrate resources on U.S. properties.
Negative
- The sale would transfer Century Mile and Century Downs racing and gaming operations out of Century's portfolio.
- Closing remains subject to regulatory approvals and other conditions; it is expected in Q4 2026 or Q1 2027.
News Explained
The company expects the transaction to reduce lease-adjusted net leverage on a pro forma basis.
Key Figures
- Aggregate purchase price
- Approximately $16.4 million (CAD 23.2 million)
- Sale of Century Mile and Century Downs operations
- FY 2025 EBITDA multiple
- 6.1x
- Aggregate purchase price
- Annual rent reduction
- Approximately $7.5 million (CAD 10.7 million)
- Expected after the properties are removed from Century's Master Lease
- Expected closing
- Fourth quarter of 2026 or first quarter of 2027
- Subject to customary regulatory approvals and closing conditions
Historical Context
-
Record Q2 revenue and Adjusted EBITDAR, narrowed shareholder loss, and a reported $708.0 million master-lease obligation.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
ebitda financial
triple-net master lease financial
pro forma financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Century Casinos owns
The real estate underlying Century Mile and Century Downs is owned by subsidiaries of VICI Properties Inc. (NYSE: VICI) ("VICI") and is leased to the operating companies under the Company's existing triple-net master lease agreement (the "Master Lease"). In connection with the closing, subsidiaries of the Company and VICI will amend the Master Lease to remove the Century Mile and Century Downs properties, and Highfield will become the new tenant of these properties and be responsible for the associated rent obligations going forward. With the removal of these two properties from Century's Master Lease, the Company's annual rent will be reduced by approximately
The Company intends to use the proceeds from the transaction to reduce its indebtedness. The transaction is expected to reduce the Company's lease-adjusted net leverage on a pro forma basis.
"As part of our ongoing strategic review process, the sale of Century Mile and Century Downs racinos is an important step towards concentrating our resources on our
The transaction is expected to close in the fourth quarter of 2026 or the first quarter of 2027, subject to customary regulatory approvals and closing conditions.
Macquarie Capital acted as exclusive financial advisor to the Company, and Field Law acted as legal counsel to the Company in connection with the transaction.
About Century Casinos, Inc.:
Century Casinos, Inc. is a casino entertainment company. In the United States the Company operates the following operating segments: (i) in the East, the Mountaineer Casino, Resort & Races in New Cumberland, West Virginia and Rocky Gap Casino, Resort & Golf in Flintstone, Maryland; (ii) in the Midwest, the Century Casinos in Cape Girardeau and Caruthersville, Missouri, and Century Casino & Hotels in Cripple Creek and Central City, Colorado; and (iii) in the West, the Nugget Casino Resort, in Reno/Sparks, Nevada. In Alberta, Canada the Company operates Century Casino & Hotel in Edmonton and the Century Casino in St. Albert. In Poland the Company operates six casinos through its subsidiary Casinos Poland Ltd. The Company continues to pursue other projects in various stages of development.
Century Casinos' common stock trades on The Nasdaq Capital Market® under the symbol CNTY. For more information about Century Casinos, visit our website at www.cnty.com.
This release may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expect," "anticipate," "believe," "intend," "estimate," "plan," "target," "goal," "potential" or similar expressions, or future or conditional verbs such as "will," "may," "might," "should," "would," "could," or similar variations. These statements are based on the beliefs and assumptions of the management of Century Casinos based on information currently available to management. Such forward-looking statements include, but are not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the sale, as well as the Company's use of the transaction sale proceeds and the expected timing for closing the transaction. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.
While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements including: the possibility that the anticipated operating results and other benefits of the transaction are not realized when expected or at all; and other risks described in the section entitled "Risk Factors" under Item 1A in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and in subsequent periodic and current SEC filings the Company may make. Century Casinos disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.
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SOURCE Century Casinos, Inc.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much is Highfield paying for Century Casinos' Alberta racetrack operations?
Highfield Investment Group agreed to pay an aggregate approximately $16.4 million (CAD 23.2 million) for the racing and gaming operations of Century Mile and Century Downs. The price represents 6.1x FY 2025 EBITDA.
When is Century Casinos' sale of Century Mile and Century Downs expected to close?
The sale is expected to close in Q4 2026 or Q1 2027, subject to regulatory approvals and other closing conditions.