Caesars completes $275m sale of Linq Promenade
The Linq Promenade has been sold to a joint venture between TPG Real Estate and Acadia Realty Trust, with proceeds allocated toward a voluntary debt prepayment as part of Caesars Entertainment’s strategic financial restructuring.
Key points:
– Linq Promenade sold to a TPG and Acadia joint venture for $275m
– Sale proceeds used for a $275m prepayment on Caesars’ Term Loan B, due 2030
– Latham & Watkins LLP, Brownstein Hyatt Farber and Schreck, LLP represented Caesars, while Kirkland & Ellis LLP advised the buyers
Caesars Entertainment has finalised the $275m sale of its Linq Promenade in Las Vegas. The property was purchased by a joint venture between TPG Real Estate and Acadia Realty Trust, marking another step in Caesars’ strategy to divest non-core assets and strengthen its financial standing.
The sale proceeds were used for a $275m voluntary prepayment on Caesars’ Term Loan B, which is set to mature in 2030. This move reflects the company’s ongoing efforts to reduce debt following financial challenges highlighted in its recent earnings reports.
The legal aspects of the transaction were managed by Latham & Watkins LLP and Brownstein Hyatt Farber and Schreck, LLP for Caesars. Kirkland & Ellis LLP provided counsel to the joint venture between TPG and Acadia.
Caesars CEO Tom Reeg said: “The sale of the Linq Promenade represents an accretive, non-core asset sale that will accelerate our debt reduction goals.”
The transaction follows Caesars’ Q3 2024 earnings report, which revealed a $9m net loss and a 2.6% year-on-year decline in total revenue to $2.9bn. Despite a relatively steady performance in its Las Vegas operations, regional revenues fell by 7.6%, influenced by increased competition and construction-related disruptions.
Caesars has also focused on expanding its digital segment, which recorded a 40.9% revenue increase during the quarter, marking the highest adjusted EBITDA for the segment to date.
The Linq Promenade sale is part of a broader asset management initiative by Caesars. Earlier in 2024, the company sold the World Series of Poker (WSOP) brand for $500m, directing the proceeds toward projects such as the renovation of Caesars New Orleans and the establishment of Caesars Virginia.
With total outstanding debt reported at $12.7bn as of September 2024, Caesars continues to prioritise asset optimisation and financial restructuring to address competitive and operational challenges.
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