Boston, MA 05/07/2014 (wallstreetpr) – Casino entertainment provider, Caesars Entertainment Corp (NASDAQ:CZR), is up in intraday trading session by a high of 14.71% after the company announced plans to restructure its long term debt. The new plan does not involve reduction of total debt but will allow the company to eliminate up to $1 billion in obligations, due in 2015. Caesar is now focused on raising $1.75 billion in long term debt an amount that will have a longer maturity date.
Caesars Restructuring Plan
Caesars Entertainment Corp (NASDAQ:CZR) has also announced plans to sell 5% of its equity to institutional investors and also plans to list shares at a future date. A lot awaits to be seen as the company is set to present its earnings for the past quarter amidst expected questions on the restructuring plan. The restructuring had been viewed as the last point of action considering the company was facing potential challenges of ending up bankrupt as cash flows continue to dwindle faster than expected.
The latest efforts according to the company’s CEO Gary Loveman will involve the launching of Caesars Growth partners that should lay foundation for significant de-leveraging. Caesarsdismal performance in the industry has not gone unnoticed as the company is currently rated as a “Sell” by TheStreet research equity firm. Deteriorating net income and feeble growth in earnings per share continue to form basis of the rating.
Sale Closing of Three Casinos
Caesars Entertainment Corp (NASDAQ:CZR) has also announced it is closing the sale of three casinos while also adding another two new independent members into its board of directors. The new financing plan is aimed at adding stability to the company’s business plan. The company has already closed the sale of Bally’s Cromwell and Quad to Caesars Growth Partners.Caesars is now awaiting the approval of the Louisiana Gaming Control Board somewhere in June, to complete the sale of Harrah’s New Orleans. The deal has already been valued at $2.2 billion with a debt of $185 million.
The latest financing plans should have an immediate effect if Caesars Entertainment Corp (NASDAQ:CZR) is to stay afloat in the industry, considering its earnings per share in the recent quarter has been below par.