Bally's Corporation (BALY) To Pursue Strategic Investment In Lieu Of Tangible Equity Unit Offering; Common Stock Offering Will Proceed

April 15, 2021 3:05 PM EDT
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Bally's Corporation (NYSE: BALY) ("Bally's") today announced that it had discontinued the offering of $250 million of its tangible equity units ("Units") and instead is pursuing a possible private offering of equity-linked securities to a potential strategic investor who made an unsolicited offer. If consummated, Bally's anticipates this offering would provide net proceeds in an amount comparable to the Unit offering. The terms of such possible other transaction have not been finalized. There is no assurance that Bally's will consummate any such transaction or, if so, or the timing or terms currently contemplated.

Bally's previously announced offering of $600 million of its common stock, including the underwriters option for a period of 30 days to purchase up to an additional 15% of common stock, is expected to proceed as planned. In addition, another strategic investor is expected to make a $50 million investment to purchase warrants exerciseable for shares Bally's common stock at the same price per share as the price to the public in the common stock offering. It is possible that Bally's will consider the issuance of additional equity or equity-linked securities in the future.

Bally's expects to apply the net proceeds from the common stock offering and the strategic investments to fund a portion of the cash consideration payable to shareholders of Gamesys Group plc ("Gamesys") upon consummation of the previously announced combination of Bally's and Gamesys (the "Combination"). If the Combination is not consummated, Bally's expects to apply the net proceeds from the common stock offering and the strategic investments for general corporate purposes, which may include repayment of debt, repurchases of its common stock, capital expenditures, acquisitions and investments.

Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Barclays Capital Inc. are acting as the lead joint book-running managers for the common stock offering. Citizens Capital Markets, Inc., Truist Securities, Inc., Fifth Third Securities, Inc. and Capital One Securities, Inc. are acting as the bookrunners for the common stock offering.



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