Exhibit 99.1
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CAESARS News
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ENTERTAINMENT\
CONTACTS: FOR IMMEDIATE RELEASE
Caesars Entertainment Grand Sierra Resort Corp.
Investors Media Beckley Singleton Chtd.
Josh Hirsberg Robert W. Stewart David Wasick
702.699.5269 702.699.5043 775.823.2900 cell: 775.720.4607
hirsbergj@parkplace.com stewartr@parkplace.com dwasick@beckleylaw.com
Caesars Entertainment agrees to sell Reno Hilton
to Grand Sierra Resort Corp.
LAS VEGAS, May 11, 2005 - Caesars Entertainment Inc. (NYSE: CZR) today
announced that it has entered into a definitive agreement to sell its Reno
Hilton casino resort to Grand Sierra Resort Corp., a Nevada-based hotel and
resort developer, for approximately $150 million.
The transaction is expected to close by the end of the fourth quarter of 2005
and is subject to customary regulatory approvals and closing conditions
outlined in the purchase agreement.
With nearly 2,000 rooms, ten restaurants, 200,000 square feet of convention
space, a world-class dinner theater and 107,000 square feet of gaming space
with more than 1,300 slot machines, the Reno Hilton is one of the premier
casino resorts in Northern Nevada. Grand Sierra Resort Corp. plans to
reconstruct the property to create the quintessential entertainment
destination, which will include one of the world's largest indoor water parks.
Upon approval of the Nevada Gaming Control Board and the Nevada Gaming
Commission, Larry Woolf, former chief executive officer and chairman of MGM
Grand Hotel, Las Vegas, will lease the property's gaming operations from Grand
Sierra Resort Corp.
"We have some very exciting plans for the Reno Hilton, which I believe is one
of the most exceptional properties in Nevada," said Thomas J. Schrade,
president of Grand Sierra Resort Corp. "We will disclose further details of
those plans as we move forward. Right now, we simply want to say that we are
looking forward to working very closely with the people and public officials
of Reno to develop an extraordinary resort that will create significant
economic benefits for the community."
Under the terms of the agreement, Grand Sierra Resort Corp. will purchase
certain assets of the Reno Hilton and will assume certain related current
liabilities. In addition, a subsidiary of the Navegante Group will purchase
certain of the gaming assets of the Reno Hilton from Caesars Entertainment and
will assume certain gaming-related current liabilities.
Pending regulatory approval, the Navegante Group will operate the casino at
the Reno Hilton pursuant to an casino lease agreement with Grand Sierra. The
aggregate consideration may be adjusted for changes in net working capital.
Oppenheimer & Company is the exclusive financial advisor to Grand Sierra
Resort Corp. Caesars Entertainment was represented by CB Richard Ellis on the
transaction.
About Grand Sierra Resort Corp.
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Grand Sierra Resort Corp., a Nevada based company, was formed by a group of
developers and investors who collectively have more than one hundred years of
experience in real estate development, hospitality, and gaming. Grand Sierra
Resort identified the Reno Hilton as having the capacity, both in land and
structure, to support one of the world's largest indoor water park and
entertainment destinations. Grand Sierra plans on redeveloping the property by
creating a synergistically themed resort, blending hotel, condominiums, indoor
water park, retail stores, restaurants, theme parks and midways elements into
an unparalleled guest experience.
Additional information on Grand Sierra Resort Corp. can be accessed through
the company's web site www.grandsierraresort.com
About Caesars Entertainment
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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.
Additional information on Caesars Entertainment can be accessed through the
company's web site at www.caesars.com.
Safe Harbor
This document 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, and future financial
results of Caesars and Harrah's anticipated acquisition of Caesars. These
forward-looking statements are based on current expectations and projections
about future events.
Readers 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 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 SEC, including Caesars Annual
Report on Form 10-K for the year ended December 31, 2004 and Quarterly Report
on Form 10-Q for the quarter ended March 31, 2005, (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 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 consummate Harrah's acquisition of
Caesars and integrate Caesars properties into Harrah's operations; the loss of
Caesars personnel in connection with Harrah's 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 revenue; our ability to recoup costs of capital investments through higher
revenues; acts of war or terrorist incidents; abnormal gaming holds; and the
effects of competition, including locations of competitors and operating and
market competition. 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. Caesars disclaims 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.
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