Dover Downs owner to buy back stock, start dividend program

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Twin River Worldwide Holdings, Inc. announced that its Board of Directors approved a capital return program under which Twin River may expend a total of up to $250 million for a stock repurchase program and payment of dividends.

Twin River, a solidly profitable company, acquired casino-resort operator Dover Downs Gaming and Entertainment earlier this year after the Delaware General Assembly modestly reduced the state’s large “take” in casino revenues.

Thanks in part to the revenue sharing formula change, Dover Downs eked out a profit last year after years of operating at a loss or on a break-even basis.

The Dover Downs deal also converted the Rhode Island-based operator into a publicly traded company.

So far, Twin Rivers has made only minor changes at Dover Downs. The biggest change was the departure of long-time Dover Downs executives.

Twin Rivers also announced that it had initiated a quarterly dividend.

(PRNewsfoto/Twin River Worldwide Holdings, )

Stock repurchases may take place in various ways, which could include open-market or private repurchase transactions, accelerated stock repurchase programs, tender offers or other transactions, the company reported.

The amount, timing and terms of any return of capital transaction will be determined based on prevailing market conditions and other factors. Twin River expects to fund any share repurchases and dividends from existing capital resources. There is no fixed time period to complete stock repurchases.

Twin River separately announced the filing of a registration statement relating to a possible secondary offering in which it may participate as a purchaser.

In addition to Dover Downs, Twin River Worldwide Holdings, Inc., owns and manages three casinos; two casinos in Rhode Island and one in Mississippi as well as a Colorado horse race track that has 13 authorized OTB licenses.

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