Caesars Entertainment Enter $400m Mortgage With VICI Properties

The subsidiary of Caesars Entertainment entered into a $400 m mortgage with a VICI Properties subsidiary, backed by the Las Vegas CAESARS FORUM Conference Center.

The five-year mortgage will initially bear interest at a rate of 7.7 percent and, subject to certain conditions, will be pre-payable starting in year three (and can be prepaid sooner if VICI acquires the CAESARS FORUM Conference Center, subject to the consent of VICI).

Caesars and VICI modified and reaffirmed the Amended and Restated Put-Call Right Agreement previously in effect between Caesars Entertainment Corporation and VICI affiliates in conjunction with the LOI and at the same time as the mortgage application, with some changes, including VICI’s call option accelerating to 2025.

In addition, Caesars and VICI have waived the conditionality of completion of the mortgage agreement on the consummation of the previously disclosed, proposed sale by Caesars to VICI of approximately 23 acres of land near, or adjacent to, The LINQ Hotel + Experience, Bally’s Las Vegas, Paris Las Vegas and Planet Hollywood Resort & Casino gaming facilities (the “Eastside Lan” The parties continue to assess future Eastside Land transaction.