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EXHIBIT 99.1
[LOGO]
FOR IMMEDIATE RELEASE Contact: Geoffrey Davis
Park Place Entertainment
702-699-5037
Craig Cavileer
Silverton Casino
702-263-7777
or
Dave Kirvan
Kirvan Communications
702-737-3100
PARK PLACE ANNOUNCES SALE OF THE LAS VEGAS HILTON
TO ED ROSKI, JR.
LAS VEGAS, July 11, 2000 - Park Place Entertainment announced today that it has
entered into an agreement to sell the Las Vegas Hilton to Ed Roski, Jr. The
transaction is expected to be completed by year end and is subject to regulatory
approval.
Total consideration for the property is estimated at $365 million, consisting of
the following components:
- $300 million for the property, plant and equipment;
- $31 million for assuming all liabilities under the Hilton licensing
agreement;
- $6 million for net working capital (estimate); and
- Park Place will also retain all "high-end gaming" customer receivables,
which were approximately $28 million at June 30th, 2000.
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As of March 31, 2000, the latest twelve months earnings before interest, taxes,
depreciation and amortization and other non-cash charges (EBITDA) for the
property were $50 million, representing an approximate 7.3x EBITDA multiple
based on the total consideration. Park Place anticipates recording a non-cash
net book loss of approximately $32 million on the disposition.
No shutdown of the property is planned and employees can expect continuity in
their positions at the casino resort. Additionally, the sale is not expected to
impact the proposed plans to extend the Bally's-MGM Grand monorail to the Las
Vegas Hilton, as the buyer agrees with Park Place's position.
"The sale of the Las Vegas Hilton allows Park Place to consolidate its high-end
gaming operations at the legendary Caesars Palace," said Arthur Goldberg,
President and CEO of Park Place Entertainment. "We plan to use the proceeds of
the sale to paydown debt and repurchase the Company's common stock."
Goldberg added, "We can now focus 100% of our efforts in Las Vegas on our four
properties at the center of the Las Vegas Strip, while at the same time we can
feel comfortable knowing that this asset will be in the hands of a successful
and responsible businessman like Ed Roski."
Roski, who built a multi-faceted business empire which includes real estate,
entertainment, hospitality, gaming and property management, said that while it
is premature to discuss specific plans for the Las Vegas Hilton, he and his team
have several areas in which they plan to focus their efforts. These include:
- A significant increase in the number, variety and quality of dining,
entertainment and retail offerings;
- A renovation of the casino and public space to a more contemporary
experience which will include additional slots;
- The remodeling of over 1,000 hotel rooms and the 45,000 SF Villa Suites
into a restaurant and nightclub venue;
- Additional development including a timeshare development, up to 1,500 new
hotel rooms and other entertainment drivers afforded by the property's
undeveloped 30 acres;
- Capitalizing on the attractive local population in all areas of
entertainment, dining and gaming;
- Creation of attractions and amenities to capture the tremendous foot
traffic created by the Las Vegas convention Center and its current
expansion.
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"We really believe our purchase of the Las Vegas Hilton is a win-win for all
involved," said Roski. "This acquisition moves our company into the mid-level
gaming and hospitality arena, which is a broader market segment and one in which
we feel very comfortable and believe we can be competitive. We've been active in
Southern Nevada for years, including gaming and hospitality, real estate
development and construction, and we're excited to increase our presence and
activity in this market."
Roski added that he will be working with the Hilton Corporation to continue the
association with the internationally recognized brand.
"We're very excited to bring our commitment and ideas to one of Las Vegas' most
identifiable properties," said Roski.
Roski pointed to these factors that made the purchase of the Las Vegas Hilton
appealing:
- The value of the property, its infrastructure and operational potential;
- The development of the monorail providing pedestrian access to the Strip;
- The location of the Las Vegas Hilton in proximity to the largest convention
center in the United States;
- The increasing focus on development in the surrounding areas such as
Turnberry Place.
Roski, 61, oversees a business dynasty as varied as it is successful. He is
President and Chief Executive Officer of Majestic Realty Co., one of the largest
privately-held real estate companies in the country, which currently owns,
manages and leases more than 40-million-square-feet of property throughout the
country.
Roski conceptualized and developed the STAPLES Center in downtown Los Angeles.
He is a co-owner of the NBA championship Los Angeles Lakers and NHL's Los
Angeles Kings.
Roski built the Silverton Hotel & Casino (then Boomtown) in 1994 and has
operated the hotel/casino since 1997. In all, Roski's companies have built more
than three million square feet of property in Southern Nevada.
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Park Place Entertainment is the world's largest gaming company and owns, manages
or has an interest in 28 gaming properties operating under the Bally's, Caesars,
Paris, Flamingo, Grand and Hilton brand names with a total of approximately 2
million square feet of gaming space, over 28,000 hotel rooms and approximately
57,000 employees worldwide.
Additional information on Park Place Entertainment can be accessed through the
Company's 24-hour investor relations service. Individuals may call toll-free
877-PPE-NYSE (877-773-6973) or visit www.parkplace.com to obtain the latest
Company news and stock price information, or to request information by email,
fax or postal mail delivery.
NOTE: THIS PRESS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" WITHIN THE
MEANING OF FEDERAL SECURITIES LAW, INCLUDING STATEMENTS CONCERNING ANTICIPATED
FUTURE EVENTS AND EXPECTATIONS. THE FORWARD-LOOKING STATEMENTS IN THIS PRESS
RELEASE ARE SUBJECT TO NUMEROUS RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN OR IMPLIED BY THE
STATEMENTS HEREIN. ADDITIONAL INFORMATION CONCERNING POTENTIAL FACTORS THAT
COULD AFFECT THE PARK PLACE'S FUTURE FINANCIAL RESULTS IS INCLUDED IN THE
COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 1999 AND
FORM 10-Q FILED FOR THE PERIOD ENDED MARCH 31, 2000.
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