Nevada panel OKs Park Place-Caesars deal

Brendan Riley

Thursday, Oct. 21, 1999 | 12:29 p.m.

CARSON CITY, Nev. - A $3 billion acquisition of Caesars World Inc. by Park Place Entertainment Corp. won expected approval Thursday from the Nevada Gaming Commission.

The Nevada panel's review coincided with a similar hearing before casino regulators in New Jersey, but there was no immediate decision from the New Jersey Casino Control Commission.

On Monday, Mississippi regulators also OK'd the deal, described by Park Place lawyer Jack Godfrey as the largest transaction involving "purely gaming interests" in history.

The Park Place deal becomes final with approvals from the three states. Follow-up endorsements also will be sought in Indiana, South Africa and Canada, Godfrey added.

The acquisition gives the Hilton Hotels Corp. gaming spinoff the most hotel rooms, the most casino space and the greatest cash flow level in the casino industry, with several major properties including Caesars Palace in Las Vegas.

Park Place executives say the Caesars name - the most recognized name in the hotel-casino industry - will be retained and the corporation will retain its strong credit rating in the deal.

The Park Place acquisition of Caesars from Starwood Hotels & Resorts is being financed by two credit lines, one for $2 billion and the other for $1 billion.

Earlier, Park Place said it had commitments from 20 to 25 banks. Lead lenders in the multibank syndicate are Bank of America, Deutsche Bank, Bank of Nova Scotia and Merrill Lynch.

Park Place executives will issue bonds later on the public debt market to refinance the acquisition.

The corporation also owns the Flamingo Hilton and Bally's on the same Flamingo Road intersection where Caesars Palace is located in Las Vegas. The acquisition means the corporation will control three of the four corners of the Las Vegas Strip's busiest intersection.

In addition to Caesars Palace, Park Place is acquiring Caesars Palace-Lake Tahoe; Caesars Atlantic City; a casino in Tunica, Miss.; an Indiana riverboat; and a 50 percent share of a Windsor, Ontario, casino that it will co-own with Hilton Hotels Corp.