|LAS VEGAS - Nov. 19, 2004 -- Caesars Entertainment Inc., (NYSE: CZR)
today announced that it has entered into a definitive agreement to sell
its Caesars Tahoe casino resort to an affiliate of Columbia Sussex Corporation,
a hotel, resort and casino operator based in Fort Mitchell, Kentucky, for
approximately $45 million.
The purchase agreement with Columbia Sussex is subject to the right of the owner of the land on which the Caesars Tahoe property is located to purchase the property on the same terms as agreed to with Columbia Sussex. Under the terms of the Caesars Tahoe lease, that right must be exercised within 60 days.
The transaction is expected to close by the end of the second quarter of 2005 and is subject to customary regulatory approvals and closing conditions outlined in the purchase agreement.
"This acquisition represents a great opportunity to purchase a superior asset in a region in which we have been familiar for 14 years. We look forward to the opportunity to re-brand this property to a new customer base appealing to a younger, hipper audience and remain competitive in light of the proliferation of Indian Gaming in California," said William Yung, President of Columbia Sussex Corporation.
Under the terms of the agreement, Columbia Sussex will purchase certain assets of Caesars Tahoe and will assume certain related current liabilities. The aggregate consideration may be adjusted for changes in net working capital. Libra Securities is the exclusive financial advisor to Columbia Sussex and Caesars Entertainment was represented by CB Richard Ellis on the transaction.
About Columbia Sussex
Columbia Sussex and its affiliates are one of the largest privately held hotel owners in the country, and one of Marriott Corporation's top licensees. Columbia Sussex and its affiliates operate 64 hotels, resorts and casinos in 28 states and overseas, including the Lighthouse Point Casino in Greenville, Mississippi, the Horizon Casino Resort in South Lake Tahoe and the Westin Casuarina property on Grand Cayman Island. It has also recently opened the Westin Casuarina in Las Vegas, and purchased the River Palms Casino in Laughlin, Nevada.
About Caesars Entertainment
Caesars Entertainment, Inc. (NYSE: CZR) is one of the world's leading gaming companies. With $4.5 billion in annual net revenue, 28 properties on four continents, 26,000 hotel rooms, two million square feet of casino space and 52,000 employees, the Caesars portfolio is among the strongest in the industry. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The company has its corporate headquarters in Las Vegas.
In July 2004, the Board of Directors of Caesars Entertainment approved an offer from Harrah's Entertainment to acquire the company for approximately $1.8 billion and 66.3 million shares of Harrah's common stock. The offer must be approved by shareholders of both companies and federal and state regulators before the transaction can close.
Additional information on Caesars Entertainment can be accessed through the company's web site at www.caesars.com .
NOTE: This press release contains "forward-looking statements" within
the meaning of the federal securities law, which are intended to qualify
for the safe harbor from liability provided thereunder. All statements
which are not historical statements of fact are "forward-looking statements"
for purposes of these provisions and are subject to numerous risks and
uncertainties that could cause actual results to differ materially from
those expressed or implied in the forward-looking statements. Such forward-looking
statements include statements regarding when the transaction is expected
to close, the company's strategy, the company's use of the sale proceeds,
Columbia Sussex's plans for the property, the financial impact of this
transaction on the company and future uses of the company's capital and
resources. Risk factors which could cause actual results to differ from
expectations include the closing of the transaction and/or the timing thereof
and matters related to the sales and transition processes. Additional information
concerning potential risk factors that could affect the company's future
performance are described from time to time in the company's reports filed
with the Securities and Exchange Commission, including the company's Annual
Report on Form 10-K for the year ended December 31, 2003 and Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2004, June 30, 2004
and September 30, 2004. The reports may be viewed free of charge at the
following website: www.sec.gov. The company undertakes no obligation to
publicly update any forward-looking statement, whether as a result of new
information, future events, or otherwise.
|Also See:||Columbia Sussex Corporation Acquiring Bally's Casino New Orleans for $24 million; Plans Significant Improvements / October 2004|
|Columbia Sussex To Reopen The 795 room Maxim, $40 million Renovation, New Name - the Westin Casuarina Hotel and Spa / Feb 2003|
|Vail Resorts Acquisition of Heavenly Ski Resort on Lake Tahoe Two Years Ago for $99.2 million Proves to be a Windfall / March 2004|