Caesars Entertainment sold the Linq Promenade in Las Vegas for $275 million. TPG Real Estate and Acadia Realty Trust, in a joint venture, purchased the property. This move is part of Caesars’ strategy to divest non-core assets and strengthen its financial position.
The company used proceeds from the sale for a voluntary prepayment of the $275 million Term Loan B, due in 2030. This demonstrates ongoing efforts to reduce debt, as highlighted in recent financial reports.
Latham & Watkins LLP and Brownstein Hyatt Farber Schreck, LLP managed the legal aspects for Caesars. Kirkland & Ellis LLP advised on the joint venture between TPG and Acadia.
Caesars CEO Tom Reeg stated, “The sale of Linq Promenade represents a non-core asset sale and addition that will accelerate our debt reduction goals.”
The transaction follows the third quarter 2024 earnings report, which showed a net loss of $9 million and a 2.6% drop in revenue, totaling $2.9 billion.
Even with stable operations in Las Vegas, regional revenues declined 7.6% due to increased competition and construction disruptions.
Caesars’ focus on expanding the digital segment
Caesars also focuses on expanding the digital segment, which increased revenue by 40.9% in the quarter, achieving the highest adjusted EBITDA to date.
The sale of Linq Promenade is part of a larger asset management initiative. In early 2024, the company sold the World Series of Poker (WSOP) brand for $500 million. Profits were directed toward 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 prioritize asset optimization and financial restructuring to address competitive and operational challenges.