RENO, Nev. and LAS VEGAS, Dec. 24,
2020 /PRNewswire/ -- Caesars Entertainment, Inc.
(NASDAQ: CZR) ("Caesars" or "CZR") today announced a definitive
agreement to sell the operations of Caesars Southern Indiana to the
Eastern Band of Cherokee Indians ("EBCI") for $250 million, subject to customary purchase price
adjustments. In addition, at the closing of the transaction, EBCI
will enter into a new lease with year one annual rent payments of
$32.5 million with VICI Properties
Inc. (NYSE: VICI) ("VICI Properties"), who maintains ownership of
the real estate of the property. As a result of this transaction,
Caesars annual payments to VICI Properties under the Regional
Master Lease will decline by $32.5
million upon closing of the
transaction.
Additionally, effective as of the closing of the transaction,
Caesars and the Eastern Band of Cherokee Indians will extend their
existing relationship by entering into a long-term agreement for
the continued use of the Caesars brand and Caesars Rewards loyalty
program at Caesars Southern Indiana.
"Expanding our relationship with the Eastern Band of Cherokee
Indians is an exciting event for Caesars Entertainment," said
Tom Reeg, CEO of Caesars
Entertainment, Inc. "Since our partnership began back in 1996, we
have admired their growth and the success of their
properties. We look forward to increasing our relationship by
extending the Caesars brand and Caesars Rewards loyalty program to
them at Caesars Southern Indiana."
"The purchase of Caesars Southern Indiana operating company
marks the beginning of an exciting new future for the Eastern Band
of Cherokee Indians," said Richard
Sneed, Principal Chief Eastern Band of Cherokee Indians. "We
are pleased to build upon our long-standing partnership with
Caesars as we look to advance our interests in commercial gaming in
the coming years."
The transaction is expected to close in the third quarter of
2021 and is subject to regulatory approvals and other customary
closing conditions.
J.P. Morgan and Latham & Watkins LLP represented Caesars
Entertainment on the transaction. Innovation Capital LLC and
Brownstein Hyatt Farber Schreck
represented the Eastern Band of Cherokee
Indians.
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 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. All
statements other than statements of historical fact are
forward-looking statements. 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 statements may be influenced by factors that could cause
actual outcomes and results to be materially different from those
projected. 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 Caesars Southern Indiana; (c)
the fact that the transactions contemplated by the transaction
agreements for the sale of Caesars Southern Indiana 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 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.
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SOURCE Caesars Entertainment, Inc.