{"id":306016,"date":"2024-01-09T11:07:54","date_gmt":"2024-01-09T17:07:54","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=306016"},"modified":"2024-01-09T11:27:43","modified_gmt":"2024-01-09T17:27:43","slug":"caesars-could-real-estate-of-2-indiana-casinos-to-reduce-debt","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-could-real-estate-of-2-indiana-casinos-to-reduce-debt\/","title":{"rendered":"Caesars Could Sell Indiana Casino Real Estate This Year"},"content":{"rendered":"

Reducing one of the gaming industry\u2019s largest debt burdens remains a top priority for Caesars Entertainment (NASDAQ: CZR), and that objective could be assisted by divesting the real estate of a pair of Indiana casinos.<\/p>\n

\"Hoosier
Hoosier Park in Indiana is one of two Indiana gaming venues where Caesars could sell the property assets this year to raise cash and reduce debt. (Image: The Herald Bulletin<\/em>)<\/figcaption><\/figure>\n

In a new report to clients, Bank of America analyst Shaun Kelley said 2024 could be the year that Caesars sells Centaur Holdings. That is the holding company of Harrah\u2019s Hoosier Park and Horseshoe Indianapolis, formerly known as Indiana Grand.<\/p>\n

We expect this sale to raise nearly $2 billion in net proceeds that should reduce traditional and lease-adjusted leverage below five times and close to their targeted range,\u201d<\/strong> wrote Kelley.<\/p><\/blockquote>\n

VICI Properties (NYSE: VICI), the largest casino real estate investment trust (REIT), would be the likely buyer of those properties. When Eldorado Resorts announced its $17.3 billion takeover offer for the \u201cold Caesars\u201d in June 2019, it struck an agreement with VICI<\/a> whereby the gaming company could sell or the REIT could acquire those assets between Jan. 1, 2022, and Dec. 31, 2024.<\/p>\n

Indiana Casino Sales Could Be Meaningful to Caesars<\/h2>\n

As of the end of the third quarter, Caesars carried $12.29 billion in outstanding liabilities. While that\u2019s off the highs seen immediately after Eldorado completed its acquisition of the company in June 2020, analysts and investors want the Harrah\u2019s operator to continue pruning debt.<\/p>\n

\n

Given management\u2019s progress on that front and a portfolio of assets that can effectively generate cash, Caesars is widely viewed as one of the more compelling deleveraging stories<\/a> in the industry. The company has also been a hotbed of asset sale rumors<\/a>, though it hasn’t engaged in such transactions over the past two years.<\/p>\n<\/div>\n

Harrah\u2019s Hoosier Park and Horseshoe Indianapolis, which are two of the operator\u2019s four Indiana casinos, joined the old Caesars by way of that company\u2019s November 2017 $1.7 billion purchase of Centaur Holdings. The company\u2019s other Indiana properties are Horseshoe Hammond and Caesars Southern Indiana.<\/p>\n

\u201cHorseshoe Hammond serves the Chicagoland area and Horseshoe Southern Indiana serves the Southern Indiana and Louisville area,\u201d according to Caesars.<\/p>\n

Caesars Leverage Risks Starting to Wane<\/h2>\n

When interest rates are elevated, as is the case today, shares of highly leveraged companies often fall out of favor with investors. In the case of Caesars, the company is at least making progress on this front, and its management team has an established record of cutting costs and debt. Potentially adding to the upbeat outlook is that some of the operator\u2019s largest capital commitments are in the rearview mirror.<\/p>\n

Coupled with accelerating free cash flow as identified project capital plans (New Orleans and Danville) come to an end, Caesars could be worth watching as leverage risks fade,\u201d<\/strong> added Bank of America\u2019s Kelley.<\/p><\/blockquote>\n

Plus, with VICI, Caesars has a partner with which it has a long-standing relationship, one that\u2019s not afraid to make deals<\/a>, and one that could be looking to add to its non-Las Vegas portfolio of casino real estate. Caesars is one of VICI’s largest tenants.<\/p>\n","protected":false},"excerpt":{"rendered":"

Reducing one of the gaming industry\u2019s largest debt burdens remains a top priority for Caesars Entertainment (NASDAQ: CZR), and that objective could be assisted by divesting the real estate of a pair of Indiana casinos. In a new report to clients, Bank of America analyst Shaun Kelley said 2024 could be the year that Caesars […]<\/p>\n","protected":false},"author":46,"featured_media":141089,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093,86430,86438],"tags":[81903,81966,86455,86457],"acf":[],"yoast_head":"\nCaesars Could Real Estate Of 2 Indiana Casinos To Reduce Debt<\/title>\n<meta name=\"description\" content=\"Caesars Could Sell Indiana Casino Real Estate This Year.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/caesars-could-real-estate-of-2-indiana-casinos-to-reduce-debt\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars Could Real Estate Of 2 Indiana Casinos To Reduce Debt\" \/>\n<meta property=\"og:description\" content=\"Caesars Could Sell Indiana Casino Real Estate This Year.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/caesars-could-real-estate-of-2-indiana-casinos-to-reduce-debt\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-09T17:07:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-09T17:27:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/07\/HP.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"834\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-could-real-estate-of-2-indiana-casinos-to-reduce-debt\/\",\"url\":\"https:\/\/www.casino.org\/news\/caesars-could-real-estate-of-2-indiana-casinos-to-reduce-debt\/\",\"name\":\"Caesars Could Real Estate Of 2 Indiana Casinos To Reduce Debt\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-could-real-estate-of-2-indiana-casinos-to-reduce-debt\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-could-real-estate-of-2-indiana-casinos-to-reduce-debt\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/07\/HP.jpg\",\"datePublished\":\"2024-01-09T17:07:54+00:00\",\"dateModified\":\"2024-01-09T17:27:43+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Caesars Could Sell Indiana Casino Real Estate This Year.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-could-real-estate-of-2-indiana-casinos-to-reduce-debt\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/caesars-could-real-estate-of-2-indiana-casinos-to-reduce-debt\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-could-real-estate-of-2-indiana-casinos-to-reduce-debt\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/07\/HP.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/07\/HP.jpg\",\"width\":1200,\"height\":834,\"caption\":\"Hoosier Park in Indiana. 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