Exhibit 99.1
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Harrahs CAESARS ENTERTAINMENT
Entertainment, Inc.
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Contact: Brad Belhouse - Investors Josh Hirsberg - Investors
Harrah's Entertainment, Inc. Caesars Entertainment, Inc.
(702) 407-6367 (702) 699-5269
David Strow - Media Robert Stewart - Media
Harrah's Entertainment, Inc. Caesars Entertainment, Inc.
(702) 407-6530 (702) 699-5043
Owen Blicksilver for Colony Capital
Owen Blicksilver Public Relations, Inc.
(516) 742-5950
Harrah's, Caesars Complete Sale of Four Casinos to Colony Capital
LAS VEGAS, April 26, 2005 - Harrah's Entertainment, Inc. (NYSE:HET) and
Caesars Entertainment, Inc. (NYSE:CZR) today completed the sale of Harrah's East
Chicago, Harrah's Tunica, Atlantic City Hilton and Bally's Tunica to an
affiliate of Colony Capital, LLC.
The Colony affiliate paid a combined total of approximately $1.24
billion for the four properties.
Harrah's and Caesars sold the four properties in connection with the
$9.4 billion merger agreement between the two companies announced July 15, 2004,
although the sale was not conditioned on closing of the merger. Stockholders of
both companies separately approved the merger on March 11, 2005. Harrah's and
Caesars expect the merger to close in the second quarter of 2005, pending
receipt of required regulatory approvals.
Founded 67 years ago, Harrah's Entertainment, Inc. owns or manages
through various subsidiaries 25 casinos in the United States, primarily under
the Harrah's and Horseshoe brand names. Harrah's Entertainment is focused on
building loyalty and value with its valued customers through a unique
combination of great service, excellent products, unsurpassed distribution,
operational excellence and technology leadership.
Caesars Entertainment, Inc. (NYSE: CZR) is one of the world's leading
gaming companies. With annual revenue of $4.2 billion, 24 properties on three
continents, more than 25,000 hotel rooms, two million square feet of casino
space and 50,000 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.
The company's Board of Directors in July 2004 accepted an offer from
Harrah's Entertainment, Inc. to acquire the company for approximately $1.9
billion in cash and 67.9 million shares of Harrah's common stock. Shareholders
of both companies approved the merger in separate meetings on March 11, 2005.
The transaction is contingent on approval by federal and state regulatory
agencies and is expected to close in the second quarter of 2005.
More information about Harrah's and Caesars is available at their
respective Web sites - www.harrahs.com and www.caesars.com
Colony Capital, LLC is a private, international investment firm
focusing primarily on real estate-related assets and operating companies. Since
1991, Colony Capital has invested more than $13.9 billion in over 7,650 assets
through various corporate, portfolio and complex property transactions. One of
the few private investment firms licensed in gaming, Colony owns Resorts
Atlantic City and the Las Vegas Hilton. Colony also is a partner in Accor
Casinos in Europe. Colony has a staff of more than 100 and is headquartered in
Los Angeles, with offices in New York, Boston, Hawaii, Paris, London, Madrid,
Rome, Beirut, Hong Kong, Tokyo, Taipei, Shanghai and Seoul. For additional
information visit www.colonyinc.com.
This release includes "forward-looking statements" intended to qualify
for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. You can identify these statements by the fact
that they do not relate strictly to historical or current facts. These
statements contain words such as "may," "will," "project," "might," "expect,"
"believe," "anticipate," "intend," "could," "would," "estimate," "continue" or
"pursue," or the negative or other variations thereof or comparable terminology.
In particular, they include statements relating to, among other things, future
actions, strategies, future performance, future financial results of Harrah's
and Caesars and Harrah's anticipated acquisition of Caesars. These
forward-looking statements are based on current expectations and projections
about future events.
Investors are cautioned that forward-looking statements are not
guarantees of future performance or results and involve risks and uncertainties
that cannot be predicted or quantified and, consequently, the actual performance
or results of Caesars and Harrah's may differ materially from those expressed or
implied by such forward-looking statements. Such risks and uncertainties
include, but are not limited to, the following factors as well as other factors
described from time to time in our reports filed with the Securities and
Exchange Commission (including the sections entitled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" contained therein): financial community and rating agency
perceptions of Harrah's and Caesars', the effects of economic, credit and
capital market conditions on the economy in general, and on gaming and hotel
companies in particular; construction factors, including delays, zoning issues,
environmental restrictions, soil and water conditions, weather and other
hazards, site access matters and building permit issues; the effects of
environmental and structural building conditions relating to our properties; the
ability to timely and cost-effectively integrate into Harrah's operations the
companies that it acquires, including with respect to its acquisition of
Caesars; access to available and feasible financing, including financing for
Harrah's acquisition of Caesars, on a timely basis; changes in laws (including
increased tax rates), regulations or accounting standards, third-party relations
and approvals, and decisions of courts, regulators and governmental bodies;
litigation outcomes and judicial actions, including gaming legislative action,
referenda and taxation; the ability of our customer-tracking, customer loyalty
and yield-management programs to continue to increase customer loyalty and same
store sales; our ability to recoup costs of capital investments through higher
revenues; acts of war or terrorist incidents; abnormal gaming holds; the effects
of competition, including locations of competitors and operating and market
competition; statements regarding the company's strategy, the company's use of
the sale proceeds, Colony Capital's plans for the property, and the financial
impact of this transaction on the company and futures uses of the company's
capital and resources.
Any forward-looking statements are made pursuant to the Private
Securities Litigation Reform Act of 1995 and, as such, speak only as of the date
made. Harrah's and Caesars disclaim any obligation to update the forward-looking
statements. You are cautioned not to place undue reliance on these
forward-looking statements which speak only as of the date stated, or if no date
is stated, as of the date of this press release.
Additional Information about the Acquisition and Where to Find It
In connection with Harrah's proposed acquisition of Caesars
("Acquisition"), on January 24, 2005, Harrah's filed definitive materials with
the Securities and Exchange Commission (SEC), including a registration statement
on Form S-4 that contains a definitive prospectus and joint proxy statement.
INVESTORS AND SECURITY HOLDERS OF HARRAH'S AND CAESARS ARE URGED TO READ THE
PROSPECTUS AND JOINT PROXY STATEMENT BECAUSE THEY CONTAIN IMPORTANT INFORMATION
ABOUT HARRAH'S, CAESARS AND THE ACQUISITION. The definitive materials filed on
January 24, 2005, the preliminary versions of these materials filed on October
20, 2004, December 20, 2004, and January 24, 2005 and other relevant materials,
and any other documents filed by Harrah's or Caesars with the SEC, may be
obtained free of charge at the SEC's web site at www.sec.gov. In addition,
investors and security holders may obtain free copies of the documents filed
with the SEC by Harrah's by directing a written request to: Harrah's
Entertainment, Inc., One Harrah's Court, Las Vegas, Nevada 89119, Attention:
Investor Relations or Caesars Entertainment, Inc., 3930 Howard Hughes Parkway,
Las Vegas, Nevada 89109, Attention: Investor Relations. Investors and security
holders are urged to read the proxy statement, prospectus and the other relevant
materials before making any investment decision with respect to the Acquisition.
Harrah's, Caesars and their respective executive officers and directors
may be deemed to be participants in the solicitation of election forms from the
stockholders of Caesars in connection with the Acquisition. Information about
those executive officers and directors of Harrah's and their ownership of
Harrah's common stock is set forth in the Harrah's Form 10-K for the year ended
December 31, 2004, which was filed with the SEC on March 1, 2005, and the proxy
statement for Harrah's 2005 Annual Meeting of Stockholders, which was filed with
the SEC on March 3, 2005. Information about the executive officers and directors
of Caesars and their ownership of Caesars common stock is set forth in the proxy
statement for Caesars' 2004 Annual Meeting of Stockholders, which was filed with
the SEC on April 16, 2004. Investors and security holders may obtain additional
information regarding the direct and indirect interests of Harrah's, Caesars and
their respective executive officers and directors in the Acquisition by reading
the proxy statement and prospectus regarding the Acquisition.
This communication shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such jurisdiction. No offering
of securities shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as amended.