Caesars Entertainment has finalized the $275 million sale of its Linq Promenade property in Las Vegas. The real estate was acquired by a joint venture between TPG Real Estate and Acadia Realty Trust, marking a step in Caesars’ strategy to divest non-core assets and improve its financial position.
The sale proceeds were used for a $275 million voluntary prepayment on the company’s Term Loan B, which is due for repayment in 2030. This move reflects the company’s ongoing efforts to reduce debt following financial difficulties mentioned in recent earnings reports.
The legal aspects of the deal were handled by Latham & Watkins LLP and Brownstein Hyatt Farber and Schreck, LLP for Caesars, while 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 deal was completed following the release of Caesars’ Q3 2024 earnings report, which revealed a net loss of $9 million and a 2.6% decrease in total revenue compared to the previous year, totaling $2.9 billion. Despite steady performance in Las Vegas, regional revenues fell by 7.6% due to increased competition and disruptions from construction activities.
Caesars has also focused on expanding its digital segment, which saw a 40.9% revenue increase for the quarter, reaching a record adjusted EBITDA for this segment.
The sale of Linq Promenade is part of the company’s broader asset management strategy. Earlier in 2024, Caesars sold the World Series of Poker (WSOP) brand for $500 million, directing the proceeds towards projects such as the renovation of Caesars New Orleans and the establishment of Caesars Virginia.
With total debt of $12.7 billion as of September 2024, Caesars continues to focus on asset optimization and financial restructuring to address competitive and operational challenges.
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