Eldorado Resorts Inc. is considering the sale of one of its casinos on the Las Vegas Strip when the hotel and casino operator completes its purchase of Caesars Entertainment Corp., Eldorado CEO Thomas Reeg told analysts on an earnings call Aug. 6.
"We have been clear that we are considering, strongly considering, the sale of a Las Vegas Strip asset. You should expect that that would happen post-closing. You shouldn't expect something to be happening there pre-closing," Reeg said.
The Eldorado-Caesars merger is expected to close in the first half of 2020, subject to shareholder and regulatory approvals.
Reeg added that any divestiture activity between now and the closing of the Caesars deal is expected "to be certainly smaller than a Vegas Strip asset."
Reno, Nev.-based Eldorado and Las Vegas-based Caesars announced their planned $17.3 billion merger in June. The combined entity will retain the Caesars brand, but executives from Eldorado, including Chairman Gary Carano, CEO Tom Reeg, President and COO Anthony Carano and CFO Bret Yunker, will lead the combined company.
In his message to analysts following the release of Eldorado's second-quarter earnings results, Reeg said the company will focus on fixing the operating structure of Caesars, "moving it more in line with the way we operate."
The executive added that the company will focus on deleveraging post-transaction, hoping to pay down $4 billion to $5 billion of debt in the 24 months after deal completion.
Reeg also mentioned that Caesars could shed some assets post-transaction in a bid to meet antitrust requirements. "There's a possibility that we will sell, or agree to sell, assets for antitrust purposes. Those should be relatively narrow and modest," Reeg said.
Apart from the planned sale of an undisclosed Las Vegas property, Eldorado already signed deals to sell two of its properties to Twin River Worldwide Holdings Inc. for a total deal value of $230 million in cash.