Caesars Entertainment, Inc. Announces Full Redemption of 5.750% Senior Secured Notes Due 2025

Rhea-AI Summary

Caesars Entertainment, Inc. (Nasdaq: CZR) has settled a cash tender offer for its outstanding $989,102,000 aggregate principal amount of the 5.750% Senior Secured Notes due 2025. The company also announced its intention to redeem all outstanding Notes on February 16, 2024, in accordance with the terms and conditions of the Notes and the indenture governing the Notes. The redemption price per Note will be 100.183% of the principal amount of the Notes, plus accrued and unpaid interest up to, but excluding, the Redemption Date.

Insights

Financial Analyst

The announcement by Caesars Entertainment, Inc. regarding the settlement of the cash tender offer for its 5.750% Senior Secured Notes due 2025 signifies a strategic financial move. This settlement likely aims to manage the company's debt profile by reducing higher-interest debt ahead of its maturity. Such actions can potentially improve the company's creditworthiness and reduce interest expenses, which may positively influence its financial performance and attractiveness to investors.

From a financial analysis perspective, the redemption price of 100.183% of the principal amount suggests a slight premium over the par value. While this incurs an immediate cost to the company, the long-term savings in interest payments could outweigh the upfront expense. Investors and analysts should monitor the impact on the company's leverage ratios and interest coverage metrics, as these will provide insight into the effectiveness of the debt management strategy.

Market Research Analyst

Caesars Entertainment's decision to redeem its Senior Secured Notes reflects broader market trends where companies are taking advantage of the current interest rate environment to restructure their debt. By doing so, they aim to lock in lower interest rates or improve their debt maturity profiles. This move may be seen as a proactive approach to capital management, which could be well-received by the market and potentially lead to a more favorable view of Caesars' stock among investors.

Market participants often view such corporate actions as indicators of management's confidence in the company's operational performance and liquidity position. A successful redemption and debt restructuring can signal to the market that the company is in a solid position to meet its financial obligations and is managing its capital structure efficiently. As a result, this could have a positive impact on the company's stock performance and market valuation.

Legal Expert

The notice of redemption for Caesars Entertainment's Senior Secured Notes is a legal procedure that adheres to the terms outlined in the indenture agreement. The specified redemption price and the adherence to the indenture terms are crucial to ensure compliance with contractual and regulatory obligations. It is important for the company to manage this process meticulously to avoid potential legal complications that could arise from any missteps in the redemption process.

Legal considerations also include ensuring that the redemption does not violate any securities laws, particularly those related to the offer and sale of securities. The clear statement in the press release that it does not constitute a notice of redemption under the optional redemption provisions of the indenture, nor an offer to sell or solicit an offer to buy securities, indicates the company's awareness and caution regarding the legal implications of their communications with investors and the market.

LAS VEGAS & RENO, Nev.--(BUSINESS WIRE)-- Caesars Entertainment, Inc. (the “Company”) (Nasdaq: CZR) today announced the settlement of the cash tender offer commenced by its indirect wholly-owned subsidiaries, Caesars Resort Collection, LLC (“CRC”) and CRC Finco, Inc. (“CRC Finco” and, together with CRC, the “Issuers”), for any and all of the Issuers’ outstanding $989,102,000 aggregate principal amount of the 5.750% Senior Secured Notes due 2025 (the “Notes”). Additionally, the Issuers have given notice of their intention to redeem all of the Issuers’ Notes outstanding on February 16, 2024 (the “Redemption Date”). The redemption is being made in accordance with the terms and conditions of the Notes and the indenture governing the Notes (the “Indenture”). The redemption price per Note will be 100.183% of the principal amount of the Notes, plus accrued and unpaid interest up to, but excluding, the Redemption Date.

The Company has instructed U.S. Bank Trust Company, National Association, the trustee under the Indenture, to distribute a Notice of Redemption to all currently registered holders of the Notes on February 6, 2024. Copies of such Notice of Redemption and additional information relating to the procedure for redemption of the Notes may be obtained from the Company’s investor relations contacts provided below.

This press release shall not constitute a notice of redemption under the optional redemption provisions of the Indenture, nor does it constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities, nor shall there be any sale of any Notes or other securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction.

About Caesars Entertainment, Inc.

Caesars Entertainment, Inc. (NASDAQ: CZR) is the largest casino-entertainment company in the US and one of the world’s most diversified casino-entertainment providers. Since its beginning in Reno, NV, in 1937, Caesars Entertainment, Inc. has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment, Inc.’s resorts operate primarily under the Caesars®, Harrah’s®, Horseshoe®, and Eldorado® brand names. Caesars Entertainment, Inc. offers diversified gaming, entertainment and hospitality amenities, one-of-a-kind destinations, and a full suite of mobile and online gaming and sports betting experiences. All tied to its industry-leading Caesars Rewards loyalty program, the company focuses on building value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. To review our latest CSR report, please visit www.caesars.com/corporate-social-responsibility/csr-reports. Know When To Stop Before You Start®. Gambling Problem? Call 1-800-522-4700.

Forward-Looking Statements

This press release may include information that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risk and uncertainties. Neither the Company nor the Issuers undertake an obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240206682969/en/

Caesars Entertainment, Inc.

Investor Relations:

Brian Agnew, bagnew@caesars.com

Charise Crumbley, ccrumbley@caesars.com

Media Relations:

Kate Whiteley, kwhiteley@caesars.com

Source: Caesars Entertainment, Inc.

FAQ

What is the ticker symbol of Caesars Entertainment, Inc.?

The ticker symbol of Caesars Entertainment, Inc. is CZR.

What is the cash tender offer announced by Caesars Entertainment, Inc.?

Caesars Entertainment, Inc. announced the settlement of the cash tender offer for its outstanding $989,102,000 aggregate principal amount of the 5.750% Senior Secured Notes due 2025.

When is the Redemption Date for the outstanding Notes of Caesars Entertainment, Inc.?

The Redemption Date for the outstanding Notes of Caesars Entertainment, Inc. is February 16, 2024.

What is the redemption price per Note for the outstanding Notes of Caesars Entertainment, Inc.?

The redemption price per Note for the outstanding Notes of Caesars Entertainment, Inc. will be 100.183% of the principal amount of the Notes, plus accrued and unpaid interest up to, but excluding, the Redemption Date.