Caesars selling properties to restructure debt
By Howard Stutz, Las Vegas Review-Journal
Caesars Entertainment Corp. said Monday it’s selling four properties — three on the Strip and Harrah’s New Orleans — to its Caesars Growth Partners subsidiary for $2.2 billion.
The transaction, which the company said in a statement will result in cash proceeds of $1.8 billion, will allow Caesars Entertainment to reduce a portion of its gaming industry-high $23 billion of debt.
Caesars Entertainment will transfer ownership of Bally’s Las Vegas, The Quad and the under-construction The Cromwell, along with Harrah’s New Orleans, to Caesars Growth Partners for $2.2 billion.
Caesars Entertainment is the parent company of Harrah’s Lake Tahoe and Harveys.
Can someone explain how transferring property from one holding company to another (subsidiary) holding company reduces debt? That is like taking an IOU from one of your pockets and putting in another pocket. All this does is provide some lawyers with something to do for a while, which wastes more money. Of course, Caesar’s doesn’t have a history of making sense.