Landcadia Holdings II has been granted regulatory approval by the New Jersey Casino Control Commission to acquire Golden Nugget Online Gaming.
“We are appreciative of the efforts of both the New Jersey Division of Gaming Enforcement and the Casino Control Commission in approving our transaction,” said Tilman J Fertitta, Co-Chairman and CEO of Landcadia II, and also owner of GNOG.
“With this regulatory approval, we are one step closer to completing our acquisition of GNOG,” added Landcadia II General Counsel, Steven L Scheinthal. “We are now waiting on the Securities and Exchange Commission to approve our definitive proxy statement for mailing to our stockholders and approval from our stockholders of the transaction, which we hope will happen in the near future.”
Golden Nugget’s igaming business is a leading operator in the state of New Jersey, which constitutes the largest regulated online gaming market in North America. Golden Nugget also anticipates launching in Michigan and Pennsylvania early in 2021, subject to regulatory approval.
Fertitta is set to remain in place as GNOG Chairman and CEO while Thomas Winter, has overseen the development of Golden Nugget’s online gaming business, will continue to serve as GNOG President.
Landcadia II will be taking on $150m of GNOG debt and will pay down at closing an additional $150m of its debt, plus pay prepayment fees, transaction fees and expenses. Subject to redemptions, there is approximately $321m currently held in Landcadia II’s trust account.
Upon payment of the purchase price, debt repayment and transaction fees and expenses, the combined company will have at least $80m on its consolidated balance sheet at closing and an anticipated pro forma equity market capitalization of nearly $700m.