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<\/a>\n <\/div>\n\n By Scott Roeben<\/a>, on December 12 2024 <\/span><\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n
Casino giant Caesars Entertainment has handed over the keys to the Linq Promenade mall to TPG Real Estate and the Investment Management Platform of Acadia Realty Trust. Just when you thought malls couldn\u2019t get more boring, this happens.<\/p>\n
On the bright side, Caesars Entertainment got a $275 million windfall for the sale, which should allow the company to lower the \u201cholds\u201d on its slot machines, and by that we mean \u201cpay down its debt.<\/p>\n
Caesars made a $275 million prepayment of its \u201cTerm Loan B\u201d due 2030 with the proceeds of the sale. This payment lowers the Caesars Entertainment debt to a paltry $12.4 billionish. The sale of the WSOP brand<\/a> will drop that down another $500 million over time, presumably.<\/p>\n Caesars Entertainment did some financial footwork back in Feb. 2024.<\/p>\n The sale is part of a recent effort to sell off \u201cnon-core\u201d assets in order to pay down debt and reduce interest payments, the bane of any public company\u2019s existence.<\/p>\n We don\u2019t really understand all the granular financial details, but we challenge you to not become aroused when reading this sentence: \u201cThe notes will be guaranteed on a senior secured basis by each existing and future wholly-owned domestic subsidiary of the company that is a guarantor with respect to the company\u2019s senior secured credit facilities.\u201d<\/p>\n You may need to take a pregnancy test, just saying.<\/p>\n Here\u2019s what that means in English, which we wrote completely on our own and without the assistance of ChatGPT, probably: The notes (a type of debt or loan) are backed by a strong guarantee. The guarantee comes from the company\u2019s current and future subsidiaries in the U.S. that the company fully owns. These subsidiaries are already acting as guarantors (or co-signers) for the company\u2019s other major loans. So, the same subsidiaries will also be responsible for ensuring these notes are paid back.<\/p>\n You just got pregnant twice, alert the media.<\/p>\n Caesars has shed about a quarter of its debt since Eldorado Resorts bought the company in 2020. Yes, during the fricking pandemic. That was a miracle nobody talks about, including us, because we\u2019re still in shock they pulled it off.<\/p>\n The sale of Linq Promenade, formerly a stinky alley between the former Imperial Palace (now The Linq Las Vegas Hotel + Experience) and Flamingo, was announced<\/a> in Oct. 2024.<\/p>\n What does the sale mean to you? Not a damn thing, probably.<\/p>\n Linq Promenade wasn\u2019t really part of the Linq casino proper, so we\u2019re fairly sure one couldn\u2019t use or spend Caesars Rewards loyalty points there.<\/p>\n The High Roller observation wheel is still owned by Caesars Entertainment, ditto the zipline over the scenic Linq Promenade. \u201cScenic\u201d meaning rooftop A\/C equipment and pigeon poop, of course.<\/p>\n What\u2019s up next for a sale? There have been rumblings for some time Caesars Entertainment might sell a Strip casino, but there are no current plans to do so. Reminder: Everything is for sale in Las Vegas at the right price.<\/p>\n Caesars still has a page on its Web site<\/a> about Linq Promenade, but we assume that will redirect in 3\u20262\u2026<\/p>\n<\/p><\/div>\n![\"\"](\"https:\/\/www.casino.org\/vitalvegas\/wp-content\/uploads\/2024\/12\/tilted_kilt_servers1-845x563.jpg\"\/)
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