Caesars Entertainment Corp. won approval for a $1.75 billion refinancing from Illinois casino regulators over the objections of some bondholders.
Representatives of some debtholders told the Illinois Gaming Board today that Las Vegas-based Caesars was putting the finances of its largest unit, Caesars Entertainment Operating Co., in jeopardy by shifting casino assets to other subsidiaries and stripping away a guarantee of their debt.
Caesars, the largest owner of casinos in the U.S. owns two Harrah's properties in JoIiet and Metropolis, giving regulators there authority over some transactions. The company has struggled to cope with a slowdown in gambling and a debt load of more than $23 billion, the result of a 2008 leveraged buyout led by Apollo Global Management LLC and TPG Capital.
Caesars fell 0.9 percent to $16.83 at 11:48 a.m.in New York. They were down 21 percent this year through yesterday.
Caesars Entertainment Operating Co.'s 10 percent notes dues in 2018 rose 0.25 cent on the dollar to 36.13 cents, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. They traded at a low of 35 on July 15.
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