08:14 AM EDT, 07/12/2024 (MT Newswires) -- Bally's (BALY) said Friday that Gaming and Leisure Properties ( GLPI ) will provide it with a total of $2.07 billion in financing as part of a series of real estate deals involving buyback-and-lease arrangements at US casinos.

Bally's said that it has signed a binding agreement with Gaming and Leisure Properties ( GLPI ) for the construction and financing of a 34-story, 500-room Chicago casino and hotel.

Under the terms of the deal, a Gaming and Leisure Properties ( GLPI ) affiliate will acquire the land beneath the development and lease it to Bally's Chicago subsidiary for $20 million per year subject to potential annual increases.

The amended lease agreement also provides for up to $940 million over 15 years in additional construction financing for the development of the casino project.

The deal also allows Gaming and Leisure Properties ( GLPI ) to acquire and lease back some property interests underlying Bally's Kansas City and Shreveport properties for $395 million, in exchange for $32.2 million in annual rent with potential annual increase.

Bally's said it expects to use all the proceeds from the sale and leaseback transactions to pay down $620 million of its revolving credit facility and for general corporate purposes.

Bally's also said it expects to amend its contribution agreement with Gaming and Leisure Properties ( GLPI ) and said it intends to sell and lease back its Twin River Lincoln, Rhode Island property before the end of 2026 for $735 million. Initial annual rent is set at $58.8 million per year.

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