American casino and hospitality giant Caesars Entertainment announced that it has completed the sale of its LINQ Promenade in Las Vegas. The sale of this Las Vegas asset was announced earlier this year and aligned with the casino and hospitality giant’s debt reduction goals.
Caesars Used the Money for a Debt Prepayment
Caesars agreed to sell the property for $275 million in October, projecting that the agreement would close by the end of the year. The LINQ Promenade, a shopping, dining and entertainment district at the heart of the Las Vegas Strip was bought by a joint venture between Investment Management Platform of Acadia Realty Trust and TPG Real Estate.
Caesars was represented by Latham & Watkins LLP and Brownstein Hyatt Farber and Schreck for the transaction, while the buyers benefitted from the counsel of Kirkland & Ellis LLP.
Caesars’s chief executive officer, Tom Reeg, commented on the deal when it was first announced, saying that it highlights his team’s ambition to divest non-core assets to speed up the company’s debt reduction process. He thanked the LINQ Promenade team and wished the property continued success.
As mentioned, the agreement has now been closed, which is in line with the previous announcement. Caesars also fulfilled its goals to reduce its debts and, concurrent with the closing of the transaction, made a $275 million voluntary prepayment to its Term Loan B due 2030.
Caesars Completed the Sale of WSOP
This isn’t Caesars’ only recent sale. In August, the company confirmed the $500 million sale of its WSOP brand to NSUS. The WSOP deal was closed at the end of October, at around the same time the company announced the sale of the LINQ Promenade.
Per the terms of the sale, Caesars Entertainment was still allowed to host the flagship WSOP live tournament series at its casino properties in Las Vegas, at least for the next 20 years. In addition to that, Caesars secured preferential rights to host live WSOP Circuit events.
Caesars will also continue to operate its WSOP Online business in the states of New Jersey, Michigan, Nevada and Pennsylvania but will be otherwise restricted from operating online peer-to-peer real-money poker operations for a specified period of time.
In other news, Caesars’ New York casino project was strongly rejected by a local teachers’ union that believes a casino in the heart of Broadway would undermine the cultural identity of the famous theater district.
Source : GamblingNews