Harrahs LV Sold for 1.14 Billion

https://www.pokernewsdaily.com/caesars-sells-harrahs-las-vegas-1-14-billion-30888/

With the corporate holdings being so complex, I wonder just who is getting screwed in this transaction.

Why sensationalize it?

Yeah it was sold, but to one of its own holding companies.

This is nothing more than another pencil pusher transaction.

Quote: FleaStiff

With the corporate holdings being so complex, I wonder just who is getting screwed in this transaction.

They're almost as good as Trump at screwing investors!

Quote: DJTeddyBear

Why sensationalize it?

Yeah it was sold, but to one of its own holding companies.

This is nothing more than another pencil pusher transaction.

I didnt realize it was one of its own companies. However the article does say this

"as Caesars will enter into a 15-year lease for the property, paying VICI an initial annual rent of $87.4 million, a number which will increase as the years go on. Caesars will continue to operate Harrah’s. When the lease term is up, Caesars will be able to extend the lease for up to 20 years in four five-year extensions."

That is kinda weird. So they sell to a company for 1.14 billion and will pay 87.4 for 15 years which is 1.3 bil. So this company is willing to basically give a loan to CET? That makes no sense. CET will just go bankrupt at some point and then get out of paying that company.

This sounds like one of those uber-complicated tax-write-off moves that only multi-billion dollar companies are able to pull off.

Actually, since they just came out of a difficult bankruptcy, sounds more like preparation for the nest one in several years.....

I was really hoping this was gonna be another one of those fake news articles that keep tricking GWAE. :)

This sounds like a typical REIT transaction. You sell the property, write some debt off your balance sheet, rent it back, and take advantage of the tax implications. I believe MGM is doing the same thing with its properties.