What Happened?
Shares of gaming, betting and entertainment company Bally's Corporation (NYSE: BALY) jumped 4.9% in the afternoon session after Greek gambling company Intralot secured €660 million ($776 million) in financing to help fund its acquisition of Bally's Interactive International division.
This move was a key step toward finalizing a cash-and-stock deal announced in July. The transaction was structured as a reverse-style merger, which positioned Bally's to become the majority shareholder of Intralot upon completion. For Bally's, the deal strengthened its cash reserves, helping to fuel major projects like the construction of its flagship casino in Chicago. The acquisition, expected to close before the end of 2025, aimed to create a leading company in the iGaming and lottery sectors with projected combined revenues of €1.1 billion.
The shares closed the day at $10.89, up 3.3% from previous close.
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What Is The Market Telling Us
Bally’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 5.6% on the news that the company announced it secured approval from lenders for the sale and leaseback of its Twin River Lincoln Casino Resort.
The deal with Gaming and Leisure Properties (GLPI) was expected to generate $735 million in cash, a significant sum the company planned to use to strengthen its financial position. Bally's stated that upon the transaction's closing, it would slash its secured debt by $500 million.
This move directly addressed investor concerns about the company's unfavorable liquidity position. In addition to the debt reduction, the agreement allowed Bally's to extend a $460 million revolving credit facility by two years to 2028, giving it more financial flexibility. The news provided a clear signal that management was taking decisive steps to fortify the company's balance sheet.
Bally's is down 44.1% since the beginning of the year, and at $10.87 per share, it is trading 50.7% below its 52-week high of $22.07 from November 2024.
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