Caesars Entertainment, Inc. Enters into Definitive Agreement to Sell the LINQ Promenade

Rhea-AI Summary

Caesars Entertainment (NASDAQ: CZR) has announced an agreement to sell the LINQ Promenade to a joint venture between TPG Real Estate and Acadia Realty Trust's Investment Management Platform for $275 million. The transaction is expected to close during the fourth quarter 2024, subject to customary approvals and closing conditions. The company's CEO, Tom Reeg, stated that this non-core asset sale will help accelerate their debt reduction goals.

Positive

• Sale of LINQ Promenade for $275 million will help reduce company debt
• Strategic divestment of non-core asset to improve balance sheet

Negative

• None.

Insights

Financial Analyst

The $275 million sale of the LINQ Promenade represents a strategic move to strengthen Caesars' balance sheet. For a company with approximately $13.7 billion in long-term debt, this transaction will help with deleveraging efforts while disposing of a non-core asset. The deal structure, involving established real estate investors TPG and Acadia, suggests fair market value pricing. The property, which opened in 2014, has been a successful retail and entertainment destination, but its sale aligns with Caesars' focus on core gaming operations. The expected Q4 2024 closing provides time for regulatory approvals while ensuring near-term debt reduction benefits. This transaction follows industry trends of gaming companies monetizing non-gaming assets to optimize their capital structure.

LAS VEGAS & RENO, Nev.--(BUSINESS WIRE)-- Caesars Entertainment, Inc. (NASDAQ: CZR) (“Caesars”) today announced an agreement to sell the LINQ Promenade to a joint venture to be formed between TPG Real Estate (“TPG”) and the Investment Management Platform of Acadia Realty Trust (“Acadia”) for $275 million. This sale is subject to customary approvals and other closing conditions and is expected to close during the fourth quarter 2024.

“The sale of the LINQ Promenade represents an accretive, non-core asset sale that will accelerate our debt reduction goals. I want to thank all the team members and the tenants of the LINQ Promenade for their partnership over the last 10 years and wish them continued success,” said Tom Reeg, CEO of Caesars Entertainment, Inc.

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/20241029840590/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 is Caesars Entertainment (CZR) selling the LINQ Promenade for?

Caesars Entertainment is selling the LINQ Promenade for $275 million.

When will Caesars Entertainment (CZR) complete the LINQ Promenade sale?

The sale is expected to close during the fourth quarter of 2024.

Who is buying the LINQ Promenade from Caesars Entertainment (CZR)?

The LINQ Promenade is being sold to a joint venture between TPG Real Estate and Acadia Realty Trust's Investment Management Platform.