Concludes restructuring of CEOC and debtor subsidiaries

Caesars Entertainment completes merger with Caesars Acquisition Company

"With reduced leverage, increased free cash flow and the new REIT structure, we are positioned with a solid foundation to pursue a diversified growth strategy," said Mark Frissora, President and CEO of Caesars Entertainment.
2017-10-09
Reading time 1:14 min
As a result of these transactions, the newly restructured Caesars Entertainment is positioned to further invest in its growth strategy and realize the benefits of a simpler and less leveraged capital structure. Conclusion of Caesars Entertainment Operating Company, Inc.s bankruptcy requires completion of a number of procedural steps which will occur during the course of the day.

"The conclusion of CEOC's restructuring leaves Caesars Entertainment with an expected enterprise value of approximately $20 billion. With reduced leverage, increased free cash flow and the new REIT structure, we are positioned with a solid foundation to pursue a diversified growth strategy," said Mark Frissora, President and Chief Executive Officer of Caesars Entertainment.

"Throughout the restructuring process, Caesars has invested significantly to upgrade and renovate its facilities. Total capex from 2015-2017 is expected to exceed $1.5 billion, which will benefit the company going forward. We are also executing hundreds of initiatives to generate incremental revenue, as well as to enhance operational efficiency, guest experiences and employee engagement through technology-driven innovation and process improvement."

Since the beginning of 2015, Caesars Entertainment has significantly improved its operations with over $700 million of Adjusted EBITDA improvement and more than 770 basis points of Adjusted EBITDA margin expansion achieved

As a result of the restructuring, debt has been reduced by more than $16 billion, excluding the capitalization of the $640 million per year lease obligation.

Caesars Entertainment has further enhanced its strong free cash flow profile through opportunistic refinancings that have resulted in combined interest savings of approximately $270 million. These savings include the anticipated benefits of refinancing all Caesars Entertainment Resort Properties, LLC ("CERP") and Caesars Growth Properties Holdings, LLC ("CGPH") debt. These refinancings are expected to close later this year.

Caesars Entertainment is well placed to support continued investment in growth and value creation opportunities, as well as initiatives targeting further enhancements in customer satisfaction and employee engagement.

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