Gaming & Leisure Properties, Inc. (NASDAQ:GLPI), a real estate investment trust (REIT) specializing in casino properties, has amended its credit agreement to increase its revolving commitments from $1.75 billion to $2.09 billion and extend the maturity date to December 2, 2028. The amendment, disclosed in a recent SEC filing, also allows for the reallocation of up to $1.04 billion into new revolving credit facilities intended for property contributions.
On Monday, GLP Capital, L.P., the operating partnership of GLPI, entered into the amendment with Wells Fargo (NYSE:WFC) Bank and other financial institutions. This move provides GLPI with enhanced financial flexibility, including the right to re-allocate funds to Bridge Revolving Facilities, which are subject to certain conditions such as pro forma compliance with financial covenants.
Loans under the Bridge Revolving Facilities will be used exclusively to fund cash distributions related to property contributions to GLP. These facilities feature a 1% annual amortization and do not allow for re-borrowing once repaid. Additionally, the loans under these facilities are not treated pro rata with the existing revolving credit facility, indicating a strategic financial structuring to support specific transactions.
The amendment reflects GLPI's ongoing relationship with its financial partners, who have provided various banking and advisory services to the company. It is important to note that the terms of the Bridge Revolving Facility are substantially identical to the existing revolving facility, except where specified. InvestingPro data reveals the company maintains a healthy current ratio of 3.36x, with liquid assets well exceeding short-term obligations, suggesting strong financial flexibility.
According to InvestingPro's Fair Value analysis, the stock appears slightly undervalued at current levels. For deeper insights into GLPI's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 7 additional key ProTips and extensive financial metrics.
In other recent news, Gaming and Leisure (NASDAQ:GLPI) Properties Inc. reported robust third-quarter performance in 2024, with nearly $2 billion in development activity planned for the coming year, yielding a notable 8.4%. The company's total income from real estate increased, driven by acquisitions, while operating expenses rose due to a provision for credit losses. The company provided an adjusted funds from operations (AFFO) guidance range of $3.74 to $3.76 per diluted share for the year-end.
Stifel, a full-service brokerage, and investment banking firm, raised its price target for Gaming and Leisure to $57.50, maintaining its Buy rating. The firm also updated its 2025 and 2026 AFFO estimates for the company, reflecting cautious investment timing expectations. Deutsche Bank (ETR:DBKGn) upgraded Gaming and Leisure from Hold to Buy, setting a new price target of $54, citing the company's strong outlook, healthy pipeline of activities, and well-positioned balance sheet.
JMP Securities sustained its Market Outperform rating on Gaming and Leisure Properties, maintaining a $55.00 price target. The firm highlighted the company's successful quarter, transformative investments, and balance sheet improvements.
Despite a slightly decreased fourth-quarter earnings guidance to $0.93 due to a recent equity raise, Gaming and Leisure Properties continues to focus solely on gaming, maintaining a target leverage range of 5 to 5.5, and using an ATM offering to prepare for future opportunities.
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