Updated September 18, 2020 - 2:50 pm
Caesars Entertainment Inc. has mortgaged the newly opened Caesars Forum convention center and entered into a four-year deal to borrow $400 million from its affiliated real estate investment trust, Vici Properties Inc.
Vici, which owns the land under several resorts, including Caesars Palace and Harrah’s, issued a letter of intent to supply Caesars with the $400 million mortgage in June.
The mortgage will initially have an interest rate of 7.7 percent, and it will be prepayable beginning in the third year, subject to certain conditions. It can be prepaid earlier if Vici acquires the conference center.
The companies also said they will “continue to evaluate” a potential $103.5 million sale of land on the east side of the Las Vegas Strip. In June, Vici had agreed to acquire 23 acres of land from Caesars that is nearby several of its Strip properties, including Bally’s, The Linq Hotel, Paris Las Vegas and Planet Hollywood Resort.
Caesars shares closed up 1.44 percent to $56.20 Friday.