Harrah's has been sold

Two Private Equity Groups has purchased Harrah's. I wonder if this will have any effect on the race tracks that Harrah's own.

[philcski]

Originally Posted by eurobounce

Two Private Equity Groups has purchased Harrah's. I wonder if this will have any effect on the race tracks that Harrah's own.

They will "shed the fat". Debt will be repackaged and part of the refi will likely require the divestiture of non-core assets (such as La. Downs.)

The first property to go will likely be the Rio, according to analysts.

Originally Posted by philcski

They will "shed the fat". Debt will be repackaged and part of the refi will likely require the divestiture of non-core assets (such as La. Downs.)

The first property to go will likely be the Rio, according to analysts.

I thought they said that there werent any plans to sell any properties???? But I would think after a couple of year they will start to sell the "property."

[saucon17]

I was at Harrah's Chester Downs about 10 days ago not bad at all, only problem it's harness. The clubhouse turn is built over Delaware River. I love the new self wagering machines they have there. The directions they give you to the track, they make you go the long way so you avoid the lovely Chester scenery. If you like garbage, graffiti and abandon cars you go the short way. Plus go in the daytime I wouldn't want to be caught there in the dark.

[philcski]

Originally Posted by eurobounce

I thought they said that there werent any plans to sell any properties???? But I would think after a couple of year they will start to sell the "property."

Trust me, this deal isn't getting done tomorrow by any means. It'll be a year or two before they really start moving real estate. Both private equity firms will have to get licensed in every jurisdiction Harrah's operates before any handover can occur; on top of that, the first thing that will happen is the current outstanding debt will be repackaged or securitized. This will take time, of course, as well.

P.S. this is my REAL job so i'm not totally full of sh!t

[Scav]

Interesting you say Rio because that is the location of the crazy popular World Series of Poker. I agree though that they are going to cut the fat. Not good for people like me that get comped from them all the time, probably some new bullcrap and not get comped anymore. Harrah's owns like half the strip now and I wouldn't be surprised to see one of their properties gets turned into condo's, like everything else out there now

Originally Posted by philcski

Trust me, this deal isn't getting done tomorrow by any means. It'll be a year or two before they really start moving real estate. Both private equity firms will have to get licensed in every jurisdiction Harrah's operates before any handover can occur; on top of that, the first thing that will happen is the current outstanding debt will be repackaged or securitized. This will take time, of course, as well.

P.S. this is my REAL job so i'm not totally full of sh!t

Yeah I trust you that is for sure. Do you think they are going to part with the 1/2 ownership in Turfway Park. I dont seem them moving any real estate until 2009/2010.

[philcski]

Originally Posted by eurobounce

Yeah I trust you that is for sure. Do you think they are going to part with the 1/2 ownership in Turfway Park. I dont seem them moving any real estate until 2009/2010.

Yes... Kentucky ain't gettin' slots any time soon.

Originally Posted by philcski

Yes... Kentucky ain't gettin' slots any time soon.

Yeah, that is what I was thinking. That bible thumper in Lexington is making sure that the issue doesnt get voted on by the people in KY. However, this same bible thumper is the one that said that the people of KY should be able to decide is same sex people can get married in the state of KY. This guy pisses me off. One hand hand he says the people should decide an issue and on the other hand he tries to keep an issue of the ballot. The reason why he wants to keep the slots issue off the ballot is because he knows the people in KY would pass the issue.

[Ghostzapperfan]

I am not so sure about that. I worked pretty hard across the river in Ohio to get the slots passed, and we were unsuccessful, losing 57-43. I would suspect that it might be a little harder in KY, although there might be enough interest in horse racing there to overcome the odds and pass what is good for the industry.

It would be interesting to see, though...

ALostTexan

Originally Posted by ALostTexan

I am not so sure about that. I worked pretty hard across the river in Ohio to get the slots passed, and we were unsuccessful, losing 57-43. I would suspect that it might be a little harder in KY, although there might be enough interest in horse racing there to overcome the odds and pass what is good for the industry.

It would be interesting to see, though...

ALostTexan

I was disappointed that the measure lost in Ohio. But from what I read, slots would pass in KY quite easily. In polling, it is about a 60-40 split in favor of slots.

[Cannon Shell]

Originally Posted by eurobounce

Two Private Equity Groups has purchased Harrah's. I wonder if this will have any effect on the race tracks that Harrah's own.

Was Dixie mentioned in any of the news articles about the sale? Surely Harrah's wouldn't make a move like this without his blessing.