Eldorado Resorts to sell Tahoe’s MontBleu, Louisiana casino for $155 million
RENO, Nev. — Eldorado Resorts announced this morning it has entered into a definitive agreement to sell the MontBleu Resort Casino & Spa on Lake Tahoe’s South Shore — as well as the Eldorado Shreveport Resort and Casino in Shreveport, La. — to Twin River Worldwide Holdings for $155 million in cash, subject to a working capital adjustment.
In connection with the planned transaction, Eldorado terminated its previously announced agreements for the sale of both assets to Maverick Gaming and returned their deposits, according to an April 24 press release.
The transaction is subject to regulatory approvals and is conditioned upon consummation of the $17.3 billion Caesars Entertainment-Eldorado Resorts merger, Twin River obtaining financing and other customary closing conditions, and is expected to close in the first quarter of 2021.
“The agreement to divest MontBleu to Twin River Worldwide Holdings is consistent with our continued focus on closing the Caesars transaction in the first half of 2020,” Eldorado Chief Executive Officer Tom Reeg said in a press release.
According to the release, Macquarie Capital is acting as exclusive financial adviser and Milbank LLP is acting as legal counsel to Eldorado in connection with the proposed transactions.
READ MORE: The change in buyers also comes at a much lower price than the original deal with Maverick Gaming. The Eldorado Shreveport property alone, for example, had an original sale price of $230 million, according to a Friday report from the Reno Gazette Journal.
According to previous reports, the closing of the $17.3 billion Eldorado/Caesars merger was initially expected to occur by the end of March this year, before the COVID-19 pandemic hit. The deal is now expected to close before the end of Q2.
In a related move, Twin River Worldwide Holdings also announced April 24 it has entered into an agreement with Caesars and VICI Properties Inc. to acquire Bally’s Atlantic City Hotel & Casino for $25 million in cash.
That transaction also is subject to customary post-closing adjustments.
Today’s news comes three months after Caesars and VICI Properties announced an agreement to sell Harrah’s Reno to an affiliate of CAI Investments for $50 million.
Heather Ashbridge, who started with Nevada State Development Corporation in 2008, previously served in several roles with the organization, including assistant vice president and loan officer. She is based in NSDC’s Reno office.