Caesars Entertainment and VICI Properties Announce Sale of Harrah’s Louisiana Downs to Rubico Acquisition
September 03 2020 - 4:15PM
Business Wire
Caesars Entertainment, Inc., (NASDAQ: CZR) (“Caesars” or “CZR”)
and VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or “VICI”)
today announced definitive agreements to sell Harrah’s Louisiana
Downs Casino, Racing & Entertainment (“Harrah’s Louisiana
Downs”) to Rubico Acquisition Corp. for $22 million. The proceeds
of the transactions shall be split $5.5 million to VICI Properties
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.
The transactions are expected to close at the end of 2020 or
early 2021, and are subject to regulatory approvals and other
closing conditions.
About Caesars Entertainment, Inc.
Caesars Entertainment, Inc. 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 Inc.
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 31 gaming facilities
comprising over 50 million square feet and features approximately
20,200 hotel rooms and more than 200 restaurants, bars and
nightclubs. Its properties are leased to industry leading gaming
and hospitality operators, including Caesars, Century Casinos Inc.,
Hard Rock International, JACK Entertainment and Penn National
Gaming. VICI Properties also 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
additional information, please visit www.viciproperties.com.
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 each of Caesars and
VICI, 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 Harrah’s
Louisiana Downs; (c) the fact that the transactions contemplated by
the transaction agreements for the sale of Harrah’s Louisiana Downs
may not be completed on the terms contemplated or at all, including
because they are 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 transactions; the possibility that
the anticipated operating results and other benefits of the
contemplated transactions are not realized when expected or at all;
and (d) 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 and VICI’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 and/or VICI or otherwise,
and neither Caesars nor VICI 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200903005827/en/
For Caesars Entertainment Investor Relations: Brian
Agnew, bagnew@caesars.com; Charise Crumbley, ccrumbley@caesars.com,
800-318-0047
Media Relations: Celena Haas-Stacey, chaas@caesars.com
For VICI Properties Investors:
Investors@viciproperties.com (646) 949-4631
David Kieske EVP, Chief Financial Officer
DKieske@viciproperties.com
Danny Valoy Vice President, Finance
DValoy@viciproperties.com
Media: PR@viciproperties.com (646) 949-4631
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