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Caesars Makes Move to Reduce $24.2 Billion Debt
- September 15, 2014 By Oliver Young -
According to reports, Caesars Entertainment Corporation, a Nevada-based gaming multi-million dollar company, has made some moves to reduce its $24.2 billion debt in the gambling industry. Last month the company announced that it prepares for financial restructuring.
Caesars, which owns the World Series of Poker, announced in a press release that:
Caesars and its subsidiary Caesars Entertainment Operating Company have made non-disclosure agreements with First Lien Creditors or particular beneficial holders of CEOC’s 11.25% senior secured notes due 2017, 8.5% senior secured notes due 2020 and 9% senior secured notes due 2020, clearing the path to begin formal discussions with the First Lien Creditors.
Committed to Constructive Work
“We are committed to working 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,” said the Chairman and CEO of Caesars Entertainment and Chairman of CEOC Gary Loveman in the press release posted on the company’s website.
Since February, the stock price of Caesars has fallen and is now just under $13 a share. The firm, which is currently running over 50 brick and mortar casinos in 13 states across the United States and five countries, closed the doors of two land based casinos this year alone, namely the Showboat in Atlantic City and Harrah’s Tunica. Loveman also said that the company is not planning to shut down any other casino properties in near future.
No Published Profit Since 2009
Caesars Entertainment Corporation hasn’t published a profit since late 2009. Reports say that the firm had a second-quarter loss of $466.4 million in mid August 2014. In comparison, the company also has a prior-year loss of $212.2 million.
According to reports the overall revenue of Caesars has grown 3 percent to $2.19 billion, but its gaming revenue dropped down 1.9 percent to $1.38 billion. The operating costs of the company also rose 4.5 percent to $2.08 billion, while interest costs rose 21 percent to $653.7 million.
Even though it closed the casino in Atlantic City, Caesars just opened Horseshoe Casino in Baltimore. Developed by CBAC Gaming which is led by Caesars, the casino is the second largest land based casino facility in the state. The $442 million Horseshoe Casino has a gaming floor of 122,000 square feet that features video lottery machines, table and card games as well as a branded poker room with 35 tables for the World Series of Poker. Furthermore, the facility has Baltimore Marketplace of 20,000 square feet that features authentic food outlets of the city, three restaurants and a couple of lounges and bars available to all visitors.
Caesars Entertainment Corporation still hasn’t move to Macau, the largest land based gambling destination in the world.
Considered as the most diversified casino entertainment provider in the gaming industry, Caesars is comprised of these 3 entities: the subsidiary Caesars Entertainment Operating Company, Caesars Entertainment Resort Properties and Caesars Growth Properties.