Caesars Entertainment Corp. last month announced the pending sale of four properties, including three on the Las Vegas Strip along with Harrah’s New Orleans. The buyer: a company subsidiary, Caesars Growth Partners, which is paying .2 billion for the quartet of resorts. Caesars owns 58 percent of the subsidiary. The remaining 42 percent is controlled by Caesars Acquisition Co., a publicly traded holding company.
Caesars says the transaction will generate proceeds of $1.8 billion, and allow the company to keep the assets in its own portfolio. The influx of cash should allow Caesars to reduce a portion of its historic debt. The company owes a total of $23 billion, a high-water mark for the industry that many analysts have said is unsustainable.
Caesars Entertainment will continue to run the four properties, which include Bally’s Las Vegas, the Quad and the Cromwell, all in Las Vegas, as well as the New Orleans resort.
“Today’s asset sales mark an important step in our ongoing efforts to repair Caesars Entertainment’s balance sheet,” Caesars Chairman and CEO Gary Loveman said in a statement.