Penn National Gaming announced that it has completed its acquisition of the Margaritaville Resort Casino in Bossier City, Louisiana, for total consideration of $115 million.

In its press release, Penn said the transaction was financed with incremental borrowings under its revolving credit facility. According to the company, the purchase price represents a multiple of about 5.0x the expected trailing 12-month adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for 2018, plus management fee. The multiple is expected to later fall to 4.5x on “expected operating synergies and cost savings.”

Along with the purchase of the Margaritaville facility, which was built in 2013, Penn has agreed to pay $23 million in initial annual rent to VICI Properties, new owner of the land on which the resort sits, as part of a 15-year lease agreement with four five-year renewal options.

The rent coverage ratio, or the ability of earnings to satisfy obligations, is foreseen to be greater than 2.0x for the first year upon closing of the deal.