Caesars Entertainment, Inc. Announces Agreement to Sell Belle of Baton Rouge to Casino Queen Holdings

Rhea-AI Summary

Caesars Entertainment (NASDAQ: CZR) announced a definitive agreement to sell the Belle of Baton Rouge to CQ Holding Company (Casino Queen). The sale will result in the removal of Baton Rouge from the Gaming and Leisure Properties (GLPI) Master Lease, while the rent payments to GLPI remain unchanged. The transaction, expected to close in mid-2021, is subject to regulatory approvals. CEO Tom Reeg thanked the Baton Rouge team for their dedication during the COVID-19 pandemic.

Positive

• The sale of Belle of Baton Rouge could streamline operations for Caesars.
• The rent payments to GLPI will remain unchanged, providing financial stability during the transition.

Negative

• The transaction is subject to regulatory approvals, introducing uncertainty.
• Potential adverse reactions from customers and employees following the sale could impact business.

RENO, Nev. and LAS VEGAS, Dec. 1, 2020 /PRNewswire/ -- Caesars Entertainment, Inc., (NASDAQ: CZR) ("Caesars" or "CZR") today announced a definitive agreement to sell Belle of Baton Rouge to CQ Holding Company, Inc. (Casino Queen).  

Pursuant to the terms of the amended lease agreement with Gaming and Leisure Properties, Baton Rouge will be removed from the GLPI Master Lease, and the rent payments to GLPI will remain unchanged. GLPI will retain ownership of the real estate of Belle of Baton Rouge.

"I want to thank all of our Baton Rouge Team Members for their hard work and dedication, especially during the COVID-19 pandemic," said Tom Reeg, CEO of Caesars Entertainment, Inc. "We wish them the best under Casino Queen's ownership."

The transaction is expected to close in mid-2021 and is subject to regulatory approvals and other customary closing conditions.

Macquarie Capital and Milbank LLP represented Caesars Entertainment on the transaction.        

About Caesars Entertainment, Inc.
Caesars Entertainment, Inc. (NASDAQ: CZR) 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.

Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the strategies, objectives and plans for future development or acquisitions of properties or operations of Caesars, as well as expectations, future operating results and other information that is not historical information. When used in this press release, the terms or phrases such as "anticipates," "believes," "projects," "plans," "intends," "expects," "might," "may," "estimates," "could," "should," "would," "will likely continue," and variations of such words or similar expressions are intended to identify forward-looking statements. Although the expectations, beliefs and projections are expressed in good faith and with what is believed to be a reasonable basis, there can be no assurance that these expectations, beliefs and projections will be realized. There are a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements which are included elsewhere in this press release. These risks and uncertainties include, without limitation: (a) the effects of the COVID-19 public health emergency, including (i) the impact of the actions taken to contain the public health emergency or mitigate its impact, (ii) the direct and indirect economic effects of the public health emergency and measures to contain it (including various state governments', tribal authorities' and/or regulatory authorities' issuance of directives, mandates, orders or similar actions restricting freedom of movement and business operations, such as travel restrictions, border closures, business closures, limitations on public gatherings, quarantines and "shelter-at-home" orders, any of which may result in the closure of business operations) and (iii) changes and instability in global, national and regional economic activity and financial market activity as a result of the COVID-19 public health emergency and the impact on consumer discretionary spending and travel, all of which are highly uncertain and cannot be predicted with confidence; (b) legislative, regulatory and economic developments, including regulatory approval of the sale of Belle of Baton Rouge; (c) the fact that the transactions contemplated by the transaction agreements for the sale of Belle of Baton Rouge may not be completed on the terms contemplated or at all, including because the sale is conditioned upon the receipt of regulatory approvals, and other closing conditions, and the potential adverse reactions or changes to business, customer, management or employee relationships, including those resulting from the announcement or completion of the contemplated sale; and (c) additional factors discussed in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in  CZR's respective most recent Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. Other unknown or unpredictable factors may also cause actual results to differ materially from those projected by the forward-looking statements.

In light of these and other risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur. These forward-looking statements speak only as of the date of this press release, even if subsequently made available on the websites of Caesars or otherwise, and Caesars does not intend to update publicly any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made, except as may be required by law.

Source: Caesars Entertainment, Inc.

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SOURCE Caesars Entertainment, Inc.

FAQ

What is the recent announcement by Caesars Entertainment regarding the sale of Belle of Baton Rouge?

Caesars announced a definitive agreement to sell Belle of Baton Rouge to CQ Holding Company.

When is the expected closing date for the sale of Belle of Baton Rouge by Caesars?

The transaction is expected to close in mid-2021, subject to regulatory approvals.

How will the sale of Belle of Baton Rouge affect Caesars' lease payments?

The rent payments to Gaming and Leisure Properties will remain unchanged after the sale.

What are some risks associated with the sale of Belle of Baton Rouge by Caesars?

The sale is subject to regulatory approvals and could lead to adverse reactions from customers and employees.