\nATLANTIC CITY \u2014 Caesars Entertainment Corp. said Friday it would begin discussions with its senior bondholders in efforts to restructure the largest portions of the company\u2019s gaming industry-high $24.2 billion debt.<\/p>\n
\tIn a filing with the Securities and Exchange Commission, Caesars announced \u201cnon-disclosure agreements with certain beneficial holders\u201d to discuss restructuring debt due in 2020.<\/p>\n
\tBloomberg News reported Monday that the talks would involve at least five senior bondholders: Pacific Investment Management Co., Elliott Management Corp., BlackRock Inc., Brigade Capital Management LLC and Beach Point Capital Management LP.<\/p>\n
\tThe companies have agreed to enter confidentiality agreements with Caesars to formally begin talks.<\/p>\n
\tIn an interview with the Las Vegas Review-Journal in Atlantic City, Caesars Entertainment Chairman Gary Loveman said the company \u201chad made progress\u201d with its unsecured creditors and talks with the first lien holders \u201cwas an important step\u201d in moving forward with healing the company\u2019s balance sheet.<\/p>\n
\tLoveman was encouraged the company would talk directly with the bondholders and not advisers.<\/p>\n
\t\u201cI believe constructive discussions will occur,\u201d Loveman said. \u201cOur aim is to get something resolved in the next few weeks.\u201d<\/p>\n
\tCaesars Entertainment has taken steps in the past 18 months to restructure the company\u2019s debt load, much of which stems back to its $31 billion private equity buyout by Apollo Global Management LLC and TPG Capital in 2008.<\/p>\n
\tLoveman has described Caesars Entertainment as the holding entity for three subsidiary organizations, \u201ctwo of which are in very good health. A third is overlevered and has pressing debt issues.\u201d<\/p>\n
\tCaesars Entertainment Resort Properties, includes the Linq development on the Strip, and Caesars Growth Partners, operates six resorts and the company\u2019s online and social gaming products.<\/p>\n
\tCaesars Entertainment Operation Co., (CEOC), however, operates 44 casino properties in 13 states \u2014 the largest chunk of the company\u2019s operating divisions. CEOC owns Caesars Palace, Caesars Atlantic City, Harrah\u2019s Reno, and much of the company\u2019s regional properties.<\/p>\n
\tCasinos and properties held under CEOC owe roughly 80 percent of the company\u2019s overall debt.<\/p>\n
\t\u201cIt\u2019s important to make that distinction,\u201d Loveman said. \u201cIt is one part of Caesars. It is not by any means all of Caesars.\u201d<\/p>\n
\tHe said the company is committed to \u201cworking constructively with creditors to deleverage CEOC and create a path toward a sustainable capital structure for CEOC that is in the best interest of all stakeholders.\u201d<\/p>\n
\tCaesars, which operates more than 50 casinos in 13 states, has closed two casinos this year, the Showboat in Atlantic City and Harrah\u2019s Tunica. Caesars still operates three casinos in Atlantic City, which will shrink to eight casinos next week when Trump Plaza closes.<\/p>\n
\tLoveman said the company has no immediate plans to close any other properties.<\/p>\n
No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"
ATLANTIC CITY \u2014 Caesars Entertainment Corp. said Friday it would begin discussions with its senior bondholders in efforts to restructure the largest portions of the company\u2019s gaming industry-high $24.2 billion debt. In a filing with the Securities and Exchange Commission,…<\/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-8008","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\/8008","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=8008"}],"version-history":[{"count":0,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8008\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/media?parent=8008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/categories?post=8008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/tags?post=8008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}