\nCaesars Drops on Reports Lazard Will Advise on Refinancing<\/p>\n
\tFeb. 10 (Bloomberg) \u2014 Caesars Entertainment Corp., the largest owner of casinos in the U.S., fell after reports that the company had hired Lazard Ltd. for advice on a debt restructuring.<\/p>\n
\tThe shares declined 3.7 percent to $21.81 at the close in New York. The Las Vegas-based company\u2019s stock has advanced 57 percent in the past year.<\/p>\n
\tCaesars, which was taken private in a 2008 leveraged buyout led by Apollo Global Management LLC and TPG Capital, has about $24 billion in debt. Over the past two years, it has sold stock to the public, bought back debt at a discount and moved assets between subsidiaries. A restructuring of its Caesars Entertainment Operating Co. unit, which holds the bulk of its properties and debt, is seen as the next step in that process, according to John Kempf, an analyst at RBC Capital Markets.<\/p>\n
\t\u201cWe all think that this is coming sooner rather than later,\u201d Kempf said today in a telephone interview.<\/p>\n
\tLazard is working with Caesars on financial restructuring opportunities, the Wall Street Journal reported today. The firm\u2019s hiring was reported on Feb. 7 by Debtwire.<\/p>\n
\tA refinancing will likely involve an exchange of second- lien debt for a combination of stock, new debt and cash, Kempf wrote in a report last month. It will be completed outside bankruptcy court, Kempf said.<\/p>\n
\tNotes Slip<\/p>\n
\tThe company\u2019s $789.7 million of 10 percent notes due in December 2018 fell about 1.1 percent today to 52.6 cents on the dollar, down from 53.2 cents on Feb. 7, according to Trace, the bond price reporting system of the Financial Industry Regulatory Authority. The notes are yielding 28.7 percent.<\/p>\n
\tContracts protecting against the company\u2019s default for five years declined 0.6 percentage points to 54.9 percent upfront, according to data provider CMA, which is owned by McGraw Hill Financial Inc. and compiles prices quoted by dealers in the privately negotiated market. That\u2019s in addition to 5 percent a year, meaning it would cost $5.49 million initially and $500,000 annually to protect $10 million of Caesar\u2019s debt against default.<\/p>\n
\tA spokesman for Caesars declined to comment. Clare Pickett, a spokeswoman for Lazard, declined to comment.<\/p>\n
Posted by:<\/strong> CC Roller on February 12, 2014, 4:19 am<\/p>\n \tCC Roller<\/p><\/div>\n<\/div>\n Posted by:<\/strong> Pit Boss on February 12, 2014, 9:05 pm<\/p>\n Caesars Drops on Reports Lazard Will Advise on Refinancing Feb. 10 (Bloomberg) \u2014 Caesars Entertainment Corp., the largest owner of casinos in the U.S., fell after reports that the company had hired Lazard Ltd. for advice on a debt restructuring….<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-6969","post","type-post","status-publish","format-standard","hentry","category-latest-casino-news"],"_links":{"self":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/6969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/comments?post=6969"}],"version-history":[{"count":0,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/6969\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/media?parent=6969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/categories?post=6969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/tags?post=6969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}