NEW YORK—Caesars Entertainment Corporation and VICI Properties Inc. have reached an agreement to sell Bally’s Atlantic City Hotel & Casino to Twin River Worldwide Holdings Inc. VICI will receive approximately $19 million from the sale, while Caesars will receive approximately $6 million. The annual base rent payments under the Non-CPLV Master Lease between Caesars and VICI remain unchanged.
“We look forward to the reopening of Bally’s Atlantic City as soon as appropriate once the public health emergency related to COVID-19 has passed,” said Caesars CEO Tony Rodio. “We appreciate Twin River’s commitment to this property, which has a great future ahead under its stewardship.”
“The sale of Bally’s Atlantic City demonstrates our ongoing commitment to work collaboratively with our tenants to optimize our individual businesses, even during these unprecedented times,” said John Payne, president/COO of VICI Properties. “This transaction allows us to maintain the existing financial terms of our master lease with Caesars and helps balance our geographic diversification as we work to complete the acquisition of Harrah’s Resort Atlantic City.”
Following the sale, Caesars will continue to operate Caesars Atlantic City, which will include the Wild Wild West casino area and The Book sports wagering facility, and Harrah’s Resort Atlantic City. VICI Properties will continue to own the land and real estate associated with Caesars Atlantic City, including the Wild Wild West casino area.
The Bally’s Atlantic City transaction is subject to regulatory approvals and other closing conditions. Bally’s Atlantic City will continue to be part of the Caesars Rewards network until closing.
Two More Resort-Casino Acquisitions
Twin River has also entered into a definitive agreement with Eldorado Resorts Inc. to acquire the Eldorado Shreveport Resort and Casino in Shreveport, LA, and the MontBleu Resort Casino & Spa in Lake Tahoe, NV, for $155 million in cash, subject to a working capital adjustment.
In connection with this transaction, Eldorado terminated its previously announced agreements for the sale of these assets to Maverick Gaming and returned the deposits.
The transaction is subject to regulatory approvals and is conditioned upon consummation of Eldorado’s Caesars transaction, Twin River obtaining financing and other customary closing conditions, and is expected to close in the first quarter of 2021.
“The agreement to divest Shreveport and MontBleu to Twin River Worldwide Holdings is consistent with our continued focus on closing the Caesars transaction in the first half of 2020,” said Tom Reeg, CEO of Eldorado.
Macquarie Capital is acting as exclusive financial advisor and Milbank LLP is acting as legal counsel to Eldorado in connection with the proposed transactions.