Gaming and Leisure Announces Pricing of 7.7M Common Stock Shares

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Gaming and Leisure Properties, Inc. (GLPI) has priced its underwritten public offering to sell 7.7 million shares of common stock at about $344.6 million. The company engages in acquiring, financing, and owning real estate property to be leased to gaming operators in triple net lease arrangements.

Shares would be sold either directly or through agents, through brokers in brokerage transactions on Nasdaq, to dealers in negotiated transactions or in a combination of such methods of sale. The price may remain fixed or can change, or at market prices prevailing at the time of sale.

Notably, BofA Securities, Wells Fargo Securities, Citigroup (C) and Mizuho Securities are serving as underwriters for the offering. (See GLPI stock charts on TipRanks)

Further, underwriters have been given a 30-day option to purchase an additional 1,155,000 shares of common stock. The offering is expected to close on December 9, 2021.

The net proceeds from the offering are expected to be used to finance a part of the deal to acquire real property assets of Live! Casino & Hotel Maryland, Live! Casino & Hotel Philadelphia, and Live! Casino Pittsburgh, including applicable long-term ground leases, from affiliates of The Cordish Companies.

In case the acquisition’s closing remains pending, Gaming and Leisure aims to use the net proceeds to repay borrowings under the senior credit facility of its operating partnership or invest in interest-bearing accounts and short-term, interest-bearing securities.

Analyst’s Recommendation

Following the news, Deutsche Bank analyst Carlo Santarelli maintained a Buy rating on the stock with a price target of $56 (20.6% upside potential).

The analyst expects Gaming and Leisure to post earnings per share of $0.63 for the fourth quarter of 2021.

Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average Gaming and Leisure price target stands at $56.33 and implies upside potential of 21.3%.

Smart Score

According to TipRanks’ Smart Score system, Gaming and Leisure gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages. (See Top Smart Score Stocks on TipRanks)

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