LAS VEGAS - Oct. 22, 2004 -- Caesars Entertainment Inc., (NYSE: CZR)
today announced that it has entered into a definitive agreement to sell
Bally's Casino New Orleans to an affiliate of Columbia Sussex Corporation,
a hotel, resort and casino operator based in Fort Mitchell, Kentucky, for
approximately $24 million. 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.
| "We are excited about the Bally's
Casino New Orleans acquisition. We think it provides a great opportunity
in the New Orleans market and we plan significant improvements and changes
to the property," said William Yung, President of Columbia Sussex Corporation.
Under the terms of the agreement, Columbia Sussex will purchase certain
assets of Bally's Casino New Orleans, and will assume certain related current
liabilities. The aggregate consideration may be adjusted for changes in
net working capital. Caesars Entertainment expects to report no material
gain or loss on the transaction. Libra Securities is the |
Bally's New Orleans
1 Stars and Stripes Blvd.
New Orleans, Louisiana |
exclusive financial advisor to Caesars Entertainment 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 .
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.
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