Why Bally's (BALY) Stock Is Trading Lower Today

What Happened?

Shares of gaming, betting and entertainment company Bally's Corporation (NYSE:BALY) fell 0.9% in the morning session after the company announced amendments to its credit facility and secured lender consent for the sale and leaseback of its Twin River Lincoln Casino Resort. 

The casino operator secured an extension on $460 million of its revolving credit facility commitments, pushing the maturity date from 2026 to October 2028. Additionally, Bally's received unanimous consent from its revolving credit lenders for the proposed sale and leaseback of its Twin River Lincoln property to Gaming and Leisure Properties Inc. for $735 million in cash. The transaction is aimed at significantly reducing the company's debt load. Upon the deal's completion, Bally's plans to use the proceeds to reduce its secured debt and credit facilities by $500 million, a move that improves its financial flexibility and strengthens its balance sheet.

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What Is The Market Telling Us

Bally’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 4.2% as the stock rebounded from a recent sell-off, aided by positive commentary from its CEO regarding potential acquisitions. The recovery follows a 7.6% drop the previous week that was driven by broader economic concerns. 

Adding to investor optimism, CEO Robeson Reeves spoke at an investor event on September 8, stating that Bally's can be a “great consolidator” in the UK igaming market and hinted at further M&A. Reeves highlighted the company's position as the number two igaming operator in the UK, holding a 14% market share. These strategic comments appear to be providing a positive catalyst for the stock after its recent decline.

Bally's is down 48.1% since the beginning of the year, and at $10.10 per share, it is trading 54.2% below its 52-week high of $22.07 from November 2024.

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