Gaming & Leisure Properties Furthers Tribal Partnership With Accretive Long-Term Financing for Caesars Republic Sonoma County
$225 MM FINANCING COMMITMENT AT A BLENDED RATE OF 12.79%
A 45-YEAR TERM LEASE OF AT LEAST $112.5 MM AT A 9.75% CAP RATE
WYOMISSING, Pa., Sept. 02, 2025 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) ("GLPI") today announced its $225 million commitment to serve as the lead real estate financing partner for a new, integrated resort, Caesars Republic Sonoma County, that will be developed on the site of the current River Rock Casino.
Pursuant to its agreements with Caesars Entertainment (NASDAQ:CZR) ("Caesars") and the Dry Creek Rancheria Band of Pomo Indians ("Dry Creek"), GLPI will initially act as a lender to the project, with a delayed draw term loan of $180 million, priced at a fixed rate of 12.50%, and a term loan B of $45 million, with a current yield to maturity of 13.95%. The blended interest rate of GLPI's financing is expected to approximate 12.79%. Upon, or prior to, maturity of the 6-year term loans, Dry Creek will lease the property to an affiliate of GLPI for a 45-year term, for an amount no less than $112.5 million, and GLPI will sublease the property back to an affiliate of Dry Creek. Annual rent on the sublease will be based on a cap rate of 9.75%.
Caesars and Dry Creek Rancheria broke ground on a new 4+ star resort in August. When completed, the resort, located just outside of Healdsburg, California, and in the heart of Sonoma wine country, will feature a premier gaming experience, overlooking the Alexander Valley and Russian River, with 1,000 slot machines and 28 table games, a 100-room hotel, four restaurants, three bars, a luxury spa, pool, and fitness center. The existing casino will remain open during construction, with the completion of Caesars Republic Sonoma County expected in the summer of 2027. Renderings of the new resort can be found here.
Peter Carlino, GLPI's Chairman and CEO, commented, "We are proud to be supporting Dry Creek Rancheria and initiating a relationship with the tribe in our role as the lead real estate financing partner for Caesars Republic Sonoma County. Through this project, we are also extending our long-term partnership with Caesars Entertainment, which reflects our corporate focus on working collaboratively with the industry's best gaming operators, to enable them to achieve their growth and development goals."
"This valuable partnership also validates other aspects of our growth strategy, importantly, our belief and commitment to pursuing long-term tribal casino financing and new market opportunities. The unique transaction structure, that GLPI was able to provide, delivers a lower-cost financing option to Dry Creek, while ensuring a long-term lease guarantee for GLPI. Second, it leverages our multi-property relationship with Caesars Entertainment, which shares a similar commitment to tribal casino relationships. This project further validates the tribal opportunity for GLPI, beyond just new greenfield developments, to ...
