Caesars Entertainment restarts IPO process

Caesars Entertainment Corp. on Tuesday restarted the company’s plans for an initial public stock offering, but at about 10 percent of what the casino operator hoped to raise when it canceled the idea nearly a year ago.

In a filing with the Securities and Exchange Commission, Caesars said its looking to raise up to $50 million by selling shares of the company, which operates 10 resorts on or near the Strip including Caesars Palace, Harrah’s, Bally’s, Flamingo, Planet Hollywood Resort and the Rio.

A year ago, Caesars planned to raise as much as $532 million before it pulled its IPO, citing market conditions.

According to the company’s prospectus, the $50 million figure is subject to change as managers of the IPO gauge investor interest.

A Caesars spokesman declined to comment beyond the filing with the SEC. The government agency has up to three months to rule on the IPO.

Caesars didn’t state how many shares it would place on the market.

KDP Investment Advisors gaming analyst Barbara Cappaert told clients in a research note the figure sought through the IPO was “a drop in the bucket for a company with just over $19 billion in debt.”

However, Cappaert suspected the IPO would lead to secondary sale of stock by the company’s major shareholders, including private equity firms Apollo Management Group and Texas Pacific Group. The two companies took Caesars — then known as Harrah’s Entertainment — private in 2008 in a $30.7 billion buyout.

Hedge fund Paulson & Co. acquired
10 percent of Caesars’ debt last year.

As of Sept. 30, Caesars had $19.6 billion in debt, up from $18.8 billion at the end of last year.

Harrah’s, when it was a publicly traded company, acquired Caesars Corp. in a $9 billion buyout in June 2005. Last year, the company changed its name to Caesars Entertainment Corp. when its IPO was announced.

Caesars is one of few casino operators expanding as the gaming industry recovers from the recession. The company, which has 52 casinos in 12 U.S. states and seven countries, is building casinos in Cincinnati and Cleveland through a joint venture with an Ohio company and released plans Monday for a casino in downtown Baltimore.

In Las Vegas, Caesars is proceeding with Project Linq, a $550 million nongaming retail, dining and entertainment development on the Strip, anchored by a 550-foot observation wheel. Caesars officials said they have raised the funds to build Project Linq.

The company is also completing the 660-room Octavius Tower at Caesars Palace, which the company expects to open New Year’s Day. The tower’s opening would give the hotel-casino more than 4,000 rooms.

Cappaert told investors she thought the company would proceed with a $500 million IPO next year to retire debt and fund growth.

“Caesars is looking at expanding gaming in Baltimore, China and pretty much most new gaming locales,” Cappaert said. “If this drop-in-the-bucket IPO works and the company gets the go-ahead on a new gaming project, we expect Caesars would be back in the market with a combo of debt and equity next year.”

Caesars’ IPO announcement comes as other IPOs seem to be moving forward.

According to The Associated Press, IPOs by daily deals pioneer Groupon and online game maker Zynga may have whetted investors’ appetites after the stock market’s volatility in recent months dampened IPO buzz.

According to Renaissance Capital, nine IPOs are expected to go to market this week. It would be the busiest week since December 2010 if all of them price successfully.

Contact reporter Howard Stutz at or 702-477-3871. Follow @howardstutz on Twitter.

Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
News Headlines
Add Event
Home Front Page Footer Listing
You May Like

You May Like