Casino firm Caesars Entertainment Corp and its unit Caesars Entertainment Operating Co Inc (CEOC) say they have fashioned a restructuring agreement to be put to holders of a “significant amount” of the latter’s second lien notes.
“Caesars Entertainment will contribute an additional US$200 million of Caesars Entertainment convertible notes to the class of second lien noteholders if the class votes in favour of CEOC’s plan of reorganisation,” the group said in a statement on Monday.
If that class of lender does not vote in favour of the deal, the additional notes are to be distributed to second lien noteholders who have signed the agreement as “an additional fee”, stated the parent.
Under a restructuring agreement dated January 14, 2015 and which the group says was supported by more than 80 percent of first lien noteholders, the operating company entered voluntary bankruptcy under Chapter 11 of the U.S. Bankruptcy Code on January 15, 2015.
The restructuring plan involves the operating unit separating virtually all of its U.S.-based gaming operating assets and real estate assets into two companies; an operating entity (referred to as “OpCo”); and a newly formed, publicly traded real estate investment trust (REIT) that will directly or indirectly own a newly formed property company (referred to as “PropCo”).
Monday’s announcement reiterated that the proposed transactions would reduce CEOC’s debt by approximately US$10 billion, providing for the exchange of approximately US$18.4 billion of outstanding debt for US$8.6 billion of new debt. Annual interest expense would be reduced by approximately 75 percent, from approximately US$1.7 billion to approximately US$450 million it stated.
The PropCo would lease its real property assets to the OpCo in exchange for annual lease payments of US$635 million, subject to certain adjustments, with the lease payments guaranteed by Caesars Entertainment, said the statement.
“The restructuring plan is subject to approval by the bankruptcy court and the receipt of required gaming regulatory approvals,” the group added in its Monday announcement.
The group’s former chief executive Gary Loveman said in August that the company was working to open a proposed casino project in South Korea’s Incheon before the 2018 Winter Olympics. Pyeongchang, in the country’s Kangwon province, will host the Olympic Winter Games from February 9 to 25, 2018.
Mark Frissora has been named president and chief executive of Caesars Entertainment with effect from July 1. Mr Loveman continues to serve as chairman of Caesars Entertainment and of CEOC.
Caesars Entertainment has also expressed interest in having a casino venue on land controlled by Manila International Airport in the Philippines.
Aug 20, 2018A key to entrepreneur Kazuo Okada reasserting control over...
Aug 17, 2018Entrepreneur Kazuo Okada (pictured) has told GGRAsia that...
Jul 06, 2018The operator of the Widus Hotel and Casino at Clark...
Jun 11, 2018Cambodia has some attributes that make it potentially...
Jun 06, 2018Global gaming supplier International Game Technology Plc...
Sep 21, 2018The Instinet research arm of stockbroking firm Nomura says mid-week casino demand has “recovered quickly”, following disruption caused by Typhoon Mangkhut over the weekend. “We have spoken with...
Sep 20, 2018
”Assuming that our [Tigre de Cristal] phase two project and the other future operators’ development plans remain on track, we may see the benefits of a ‘cluster’ effect [in the Primorye Integrated Entertainment Zone] as early as 2021”
Summit Ascent, lead developer of Tigre de Cristal