Caesars Entertainment to Sell Macau Golf Property
Caesars Entertainment has informed regulators that it is selling its property in Macau to an Asian developer for $438 million. In its quarterly filing to the U.S. Securities and Exchange Commission the company said that it has agreed to sell the golf course property to Pearl Dynasty Investments Ltd.
Caesars has a massive $23.7 billion of debt and it is thought that the company will make net proceeds of around $420 million from the sale which it will use to either fund capital expenditures or buy back outstanding debt obligations.
The company spokesman, Gary Thompson, said that due to a confidentiality clause in the sale agreement, Caesars cannot comment beyond what was disclosed in the 10-Q report.
The report said that the agreement calls for an initial deposit this week of $65.7 million from Pearl dynasty and plans for the transaction to be completed within 90 days. If the deal fails then Caesars could keep as much as $43.8 million.
While Caesars is the largest casino operator in the U.S it is also the only major U.S. casino company without a casino in Macau. However, there are a finite number of gambling licenses in Macau and Caesars has never managed to gain one.