RTTNews | Dec 24, 2020 08:49AM EST

08:49 Thursday, December 24, 2020 (RTTNews.com) - Caesars Entertainment, Inc. (CZR), a casino-entertainment company, said Thursday it has agreed to sell the operations of Caesars Southern Indiana to the Eastern Band of Cherokee Indians or EBCI for $250 million, subject to customary purchase price adjustments. The transaction is expected to close in the third quarter of 2021.

At the closing of the transaction, EBCI will also enter into a new lease with year one annual rent payments of $32.5 million with VICI Properties Inc. (VICI), who maintains ownership of the real estate of the property.

Caesars noted that its annual payments to VICI Properties under the Regional Master Lease will decline by $32.5 million upon closing of the transaction. In addition, effective as of the closing of the transaction, Caesars and the Eastern Band of Cherokee Indians will extend their existing relationship by entering into a long-term agreement for the continued use of the Caesars brand and Caesars Rewards loyalty program at Caesars Southern Indiana.

Separately, VICI Properties said it has agreed to enter into a triple-net lease agreement with EBCI with respect to the real estate property associated with Caesars Southern Indiana.

As part of the transaction, the parties have also agreed to negotiate a right of first refusal or ROFR for VICI Properties on the real property associated with the development of a new casino resort in Danville, Virginia.

VICI Properties noted that initial total annual rent under the lease with EBCI will be $32.5 million. The lease will have an initial term of 15 years, with four 5-year tenant renewal options.

The tenant's obligations under the lease will be guaranteed by EBCI, VICI Properties added.

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