Looking for a way to grow its business, Caesars Entertainment Corp. (CZR) will form a new company with the help of $500 million being invested by Apollo Management LP and TPC Capital LP, the two investment firms that took the company private several years ago.
With debt exceeding $21 billion, the company that operates some 51 gaming properties in North America, has had trouble generating sufficient cash flow to meet its capital needs.
Under the plan being proposed, the company will have a majority interest in Caesars Growth Partners LLC that will include Planet Hollywood Resort & Casino in Las Vegas, its online business, Caesars Interactive Entertainment, and possibly other company assets.
However, CZR will retain a majority ownership in the new company.
Once completed, the company will offer shareholders the right to buy a stake in the new company. This, the company expects, could generate up to $1.2 billion in new cash.
Ray Poirier is the longtime executive editor at GamingToday.
Contact Ray at [email protected].