Caesars Entertainment, Inc. Closes Sale of the LINQ Promenade

Rhea-AI Summary

Caesars Entertainment (NASDAQ: CZR) has completed the previously announced sale of the LINQ Promenade for $275 million to a joint venture between TPG Real Estate and Acadia Realty Trust's Investment Management Platform. The company immediately utilized the proceeds to make a $275 million voluntary prepayment of their Term Loan B due 2030.

Positive

• Sale of LINQ Promenade generated $275 million in cash
• Immediate debt reduction through $275 million Term Loan B prepayment
• Strategic asset monetization improving balance sheet

Negative

• Divestment of revenue-generating property

Insights

Financial Analyst

The $275 million sale of the LINQ Promenade represents a strategic move to optimize Caesars' asset portfolio and strengthen its balance sheet. The immediate application of proceeds to reduce Term Loan B debt demonstrates prudent financial management, improving the company's debt profile ahead of its 2030 maturity. This transaction is particularly noteworthy as it allows Caesars to monetize a non-core real estate asset while maintaining operational presence in the area. The joint venture between TPG Real Estate and Acadia Realty Trust brings strong institutional backing to the property, suggesting potential for future value enhancement. The deal aligns with the industry trend of gaming companies separating their real estate assets from operations to unlock shareholder value.

Real Estate Analyst

The LINQ Promenade transaction reflects the continued investor appetite for prime Las Vegas Strip retail assets. The property's strategic location and established foot traffic make it an attractive investment for institutional real estate players like TPG and Acadia. The $275 million price point suggests strong valuation metrics for premium Strip-adjacent retail properties. This deal structure, allowing Caesars to maintain operational presence while monetizing the real estate, exemplifies the evolving landscape of gaming-adjacent property ownership. The partnership between TPG's real estate expertise and Acadia's retail management capabilities could potentially enhance the property's value through operational improvements and tenant optimization.

LAS VEGAS & RENO, Nev.--(BUSINESS WIRE)-- Caesars Entertainment, Inc. (NASDAQ: CZR) (“Caesars”) today announced the closing of the previously announced sale of the LINQ Promenade to a joint venture formed between TPG Real Estate (“TPG”) and the Investment Management Platform of Acadia Realty Trust (“Acadia”) for $275 million. Concurrent with the closing of the transaction, Caesars made a $275 million voluntary prepayment of our Term Loan B due 2030 with the proceeds from the transaction.

Latham & Watkins LLP and Brownstein Hyatt Farber and Schreck, LLP represented Caesars on the transaction. Kirkland & Ellis LLP provided transaction counsel to TPG & Acadia.

About Caesars Entertainment, Inc.

Caesars Entertainment, Inc. (NASDAQ: CZR) is the largest casino-entertainment company in the US and one of the world’s most diversified casino-entertainment providers. Since its beginning in Reno, NV, in 1937, Caesars Entertainment, Inc. has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment, Inc.’s resorts operate primarily under the Caesars®, Harrah’s®, Horseshoe®, and Eldorado® brand names. Caesars Entertainment, Inc. offers diversified gaming, entertainment and hospitality amenities, one-of-a-kind destinations, and a full suite of mobile and online gaming and sports betting experiences. All tied to its industry-leading Caesars Rewards loyalty program, the company focuses on building value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. Know When To Stop Before You Start.® Gambling Problem? Call 1-800-522-4700. For more information, please visit www.caesars.com/corporate.

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. Forward-looking statements include all statements other than statements of historical fact, including statements regarding market performance and expected timing of consummation of operations. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond Caesars' control and could materially affect actual results, performance, or achievements. Although Caesars believes that in making such forward-looking statements its expectations are based upon reasonable assumptions, such forward-looking statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Caesars cannot assure you that the assumptions upon which these statements are based will prove to have been correct. Caesars does not 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241212188616/en/

Investor Relations: Brian Agnew, bagnew@caesars.com; Charise Crumbley, ccrumbley@caesars.com, 800-318-0047



Media Relations: Kate Whiteley, kwhiteley@caesars.com

Source: Caesars Entertainment, Inc.

FAQ

How much did Caesars Entertainment (CZR) sell the LINQ Promenade for?

Caesars Entertainment sold the LINQ Promenade for $275 million to a joint venture between TPG Real Estate and Acadia Realty Trust.

What did Caesars Entertainment (CZR) do with the LINQ Promenade sale proceeds?

Caesars used the entire $275 million proceeds from the LINQ Promenade sale to make a voluntary prepayment on their Term Loan B due 2030.

Who purchased the LINQ Promenade from Caesars (CZR)?

The LINQ Promenade was purchased by a joint venture formed between TPG Real Estate and the Investment Management Platform of Acadia Realty Trust.

When is the Term Loan B that CZR made a prepayment on due?

The Term Loan B that Caesars made the $275 million prepayment on is due in 2030.