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Caesars Entertainment Initiates Billion Dollar Bond Sale

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On Wednesday, Caesars Entertainment revealed an important financial move. The company announced its intention to release bonds worth approximately $1.5 billion.

These bonds, aimed at qualified institutional investors, will be offered through a private placement adhering to Rule 144A of the Securities Act of 1933. The company labeled these as senior secured notes, with a maturity date set for 2032. Caesars mentioned that these notes would come with guarantees from its domestic subsidiaries, contingent upon obtaining necessary regulatory consents.

Caesars Entertainment, Inc. today announced that the Company intends to offer, subject to market and other conditions, $1,500.0 million aggregate principal amount of senior secured notes due 2032 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and to persons outside the United States under Regulation S of the Securities Act.

StatementCaesars Entertainment

Caesars to Create New Term Loan Facility

In addition to the bond issuance, Caesars Entertainment also unveiled its strategy to establish a new term loan facility, termed as the “New Term B-1 Loan,” amounting to $2 billion. This step involves modifying the existing CEI Credit Agreement. The company clarified, however, that the finalization of the New Term B-1 Loan under the CEI Credit Agreement does not influence the completion of the notes sale.

The funds acquired from both the term loan and the notes are earmarked for addressing the existing financial obligations of the company. This includes settling the firm’s 6.250% Senior Secured Notes, which are due in 2025. Furthermore, the proceeds are intended to cover various expenses and fees associated with these financial transactions.

Q4 Results May Not Match Predictions

This strategic financial initiative comes in the wake of Caesars releasing its preliminary results for the fourth quarter of 2023. Earlier in the month, the company provided insights into its anticipated performance for this period. It highlighted that there might be discrepancies between the expected EBITDA and sales figures and the actual outcomes.

Related: Caesars Removes Perks for Diamond-Level VIP Gamblers in Atlantic City

The company’s estimated revenue for Q4 2023 is projected to range between $2.815 billion and $2.835 billion, slightly below the Wall Street forecast of $2.89 billion. Similarly, the EBITDA for the same period is anticipated to lie between $920 million and $940 million, not meeting the analyst predictions of $957 million.

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