Caesars Entertainment and VICI Properties Complete Sale of Harrah's Louisiana Downs

Rhea-AI Summary

Caesars Entertainment (CZR) and VICI Properties (VICI) have finalized the sale of Harrah's Louisiana Downs to Rubico Acquisition Corp. for $22 million. The split of proceeds allocated $5.5 million to VICI and $16.5 million to Caesars, subject to customary adjustments. Importantly, the annual base rent payments under the Regional Master Lease between the two companies will remain unchanged. This transaction reflects Caesars’ ongoing strategy to optimize its asset portfolio while maintaining stable earnings from its lease agreements.

Positive

• Completion of the sale of Harrah's Louisiana Downs for $22 million enhances asset management.
• Stable annual base rent payments between Caesars and VICI remain unchanged.

Negative

• None.

LAS VEGAS and NEW YORK, Nov. 1, 2021 /PRNewswire/ -- Caesars Entertainment, Inc. (NASDAQ: CZR) ("Caesars Entertainment" or "Caesars") and VICI Properties Inc. (NYSE:VICI) ("VICI Properties" or "VICI") today announced they have completed the previously disclosed transaction to sell Harrah's Louisiana Downs Casino, Racing & Entertainment ("Harrah's Louisiana Downs") to Rubico Acquisition Corp. for $22.0 million.  The proceeds of the transaction were split $5.5 million to VICI and $16.5 million to Caesars subject to customary adjustments for cash and net working capital. The annual base rent payments under the Regional Master Lease between Caesars and VICI will remain unchanged.

About Caesars Entertainment

Caesars Entertainment is the largest casino-entertainment company in the U.S. and one of the world's most diversified casino-entertainment providers. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment's resorts operate primarily under the Caesars®, Harrah's®, Horseshoe® and Eldorado® brand names. Caesars Entertainment offers diversified amenities and one-of-a-kind destinations, with a focus on building loyalty and value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars Entertainment is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. For more information, please visit www.caesars.com/corporate.    

About VICI Properties

VICI Properties is an experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace. VICI Properties' national, geographically diverse portfolio consists of 27 gaming facilities comprising over 46 million square feet and features approximately 17,800 hotel rooms and more than 200 restaurants, bars, nightclubs and sportsbooks. Its properties are leased to industry leading gaming and hospitality operators, including Caesars, Century Casinos, Inc., the Eastern Band of Cherokee Indians, Hard Rock International Inc., JACK Entertainment and Penn National Gaming, Inc. VICI Properties also has an investment in the Chelsea Piers, New York facility and owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip. VICI Properties' strategy is to create the nation's highest quality and most productive experiential real estate portfolio.  For more information, please visit www.viciproperties.com

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words "anticipates," "assumes," "believes," "estimates," "expects," "guidance," "intends," "plans," "projects," and similar expressions that do not relate to historical matters. All statements other than statements of historical fact are forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors (including, without limitation, the effects of the COVID-19 public health emergency) which are, in some cases, beyond Caesars' and VICI's control and could materially affect actual results, performance, or achievements.

Although each of Caesars and VICI believe that in making such forward-looking statements its expectations are based upon reasonable assumptions, such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected.  Caesars and VICI cannot assure you that the assumptions upon which these statements are based will prove to have been correct. Important risk factors that may affect their respective business, results of operations and financial position are detailed from time to time in each of Caesars' and VICI's filings with the Securities and Exchange Commission. Neither Caesars nor VICI undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.

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SOURCE Caesars Entertainment, Inc.

FAQ

What was the sale amount of Harrah's Louisiana Downs by Caesars Entertainment and VICI Properties?

The sale amount was $22 million.

How much did Caesars Entertainment receive from the sale of Harrah's Louisiana Downs?

Caesars received $16.5 million from the sale.

What amount did VICI Properties receive from the sale of Harrah's Louisiana Downs?

VICI Properties received $5.5 million from the sale.

Will the annual base rent payments change after the sale of Harrah's Louisiana Downs?

No, the annual base rent payments under the Regional Master Lease will remain unchanged.