Hurricane Sandy’s impact is still being felt by residents and businesses in the New York-New Jersey area and the casinos in Atlantic City are no different. On Monday, Caesars Entertainment Corp. warned that its fourth quarter fiscal report will reflect Sandy’s negative effect on its business.
The company said its loss during the period ending on Dec. 31, 2012, will be substantially higher than what most analysts have forecast. Instead of coming in at $260 million, the company said, the likelihood is that the loss will be between $452 million and $556 million.
Also, because its four Atlantic City properties were closed for several days during and after the storm, total revenue for the period will likely be closer to $1.55 billion than to the previous estimate of $2.11 billion.
The storm’s impact, the company said, probably cost their four casinos between $30 million and $35 million, as well as about $1 billion in property damage. The losses due to damage and business interruption did not exceed its insurance deductible, the company added.
On another matter, Caesars officials said they had arranged for a $1.5 billion loan through a seven-year note that carries a 9 percent interest tag. The loan, made through a private placement, will be used to retire some existing loans as well as for company purposes.
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