Caesars Entertainment Latest-News –Â On Wednesday State Regulators gave initial approval to a plan by Caesars Entertainment Corp. to spin Planet Hollywood Resort, its interactive gaming business and a planned Baltimore casino into a separate company majority owned by the gambling giant.
In a filing with the U.S. Securities and Exchange Commission, Caesars said that it would raise $1.18 billion from selling stock for the new public entity.
The release of this new sent Caesars Entertainment Corp. stocks up nearly 13% on Wednesday.
Caesars Entertainment Deputy General Counsel Mike Cohen stated that $500 million of the debt which is tied to Planet Hollywood would move to the new entity. $500 million is nothing compared to the $21 billion in long term debt currently held by the company.
“Compared to our capital structure, that’s not a big change.” he said. “Caesars has a lot of debt. We think it’s manageable, but others disagree.”
SEC filings and comments indicate that Caesars Entertainment and the newly formed Caesars Acquisition are creating Caesars Growth Partners. Caesars Growth Partners includes Caesars Interactive Entertainment, Planet Hollywood, and the under-development Horseshoe Casino Baltimore.
Caesars Entertainment Distributes $1.18 billion in stocks
The SEC filing went on to indicate that company officials said they will distribute rights to stockholders to buy as many as 125.4 million shares of Caesars Acquisition at $9.43 a share.
Caesars Entertainment and its private equity owners â€” TPG Global and Apollo Global Management â€” will have as much as 70 percent ownership in the new company. The private equity groups are expected to invest $500 million in the venture. – LVRJ
According to Cohen, mot much will change except for the Corporate Structure.
Caesars Interactive is presently one of the company’s most lucrative projects.
Caesars Interactive plans to launch legal and regulated World Series of Poker Websites in Nevada and New Jersey.
Control board members spent nearly an hour exploring the planned spinoff, unanimously voting to approve the action. The Nevada Gaming Commission is set to make a final ruling July 25.
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