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Buyers and Sellers Dance the Dance with Atlantic City Casinos
Ah, the Atlantic Club in Atlantic City: your ex that everybody wants to sleep with, but no body shall marry. This New Jersey land gaming joint keeps on finding brand new suitors, however, and now an one that is new popped through to the horizon: a local attorney-slash-entrepreneur, George Miller, who’s produced an investment group using The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this real estate duo are eyeing all kinds of East Coast casinos, with the target of firming something up before New 12 months’s 2014 strikes midnight on the clock.
Atlantic Club Just One Contender
While Miller won’t come right out and state who is looking like they’ll certainly be getting a diamond just yet, he did inform the Press of Atlantic City his group hasn’t eliminated the Atlantic Club as a contender, but that they were ‘looking all over the spot’ for just the spot that is right make their deal.
The situation is manufactured a bit more interesting in that both Miller and Flynn hold very small stakes in A pennsylvania that is caesars-run property albeit just a 0.25% stake each. Press of Atlantic City interviewer Donald Wittkowski implies that this alliance that is minor help the duo, as Caesars has four casinos in Atlantic City and may be prepared to part with one. You might recall that Caesars’ international debt-load is sky-high, and some cash right now might be over welcomed as some of their records are coming due in 2015. Rumors are that possibly Trump Plaza, Golden Nugget and Revel along side Caesars’ Showboat might all be getting glances that are sexy Miller and Flynn at this time.
A good amount of Inventory Up for Grabs
It looks like it’s a sellers market these times, though; also in line to buy something in Atlantic City almost certainly to then get constantly in place getting an interactive gaming license for AC’s imminent Internet launch are outfits like PokerStars, possibly Kentucky’s Churchill Downs horse racing operation, as well as Philly’s SugarHouse casino owners are said to be looking to expand in to the Atlantic City market. Uk operators 2UP Gaming is additionally reported become interested in AC, backed evidently by an unnamed mogul that is asian.
On the list of properties letting it be known they are able to be readily available for the proper price are the now-infamous Atlantic Club, the Plaza (which killed a potential handle the western Coast’s Meruelo Group for $20 million when the casino’s main mortgage holder Carl Icahn stated ‘I don’t think so’ to your low-ball offer), along with the Golden Nugget and poor ol’ Revel, which just can not appear to stand up, it’s therefore debt-heavy at the top.
Needless to say, you might wonder why a town whose casinos are doing so generally awful within the web earnings department will be therefore eagerly courted by so many these days, and the obvious response is both the interactive gaming potential (you can’t obtain an online operator’s license without having a land casino) also as the seemingly vague potential for the legalization of sports betting in Atlantic City’s land casinos, which has been shot down more times than an Iranian war air plane over the White home.
Regardless, Miller claims his investment group is doing its due diligence concerning this market. Despite Atlantic City’s crappy profit ledgers the past couple of years, he states he views ‘a lot of good on the horizon.’
Caesars Entertainment Rearranges Deck Furniture for Debt Restructuring
Can this amount of Titanic debt be salvaged from dragging the ship to the base regarding the economic ocean? That is the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of the kingpin Las Vegas Strip properties right into a new company that is holding along with the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The business has instructed its shareholders they have only until Oct. seventeenth getting in on a stock fire sale to generate $1.18 billion in much-needed cash infusions as well. And you thought your garage sales were busy.
Shareholders Can Buy Stocks First
The Securities and Exchange Commission (SEC) filing created by Caesars announces that shareholders can get first dibs on one share each of this new Caesars Acquisition Co. (CAC) for every share regarding the existing parent company they own. This restructuring was into the works because this past Spring, and was formally approved by the Nevada Gaming Control Board in July.
The newly formed CAC will be a partial owner of the also newly created Caesars Growth Partners, and along with Caesars Entertainment (are you dizzy yet?), the new entity will own Planet Hollywood, the Baltimore under-construction property, and Caesars Interactive Entertainment, which, of course, spearheads the World Series of Poker (WSOP) real money online poker brand that just recently launched for Nevada Internet players under the restructuring.
Now you might think the purpose of all this fundraising is to pay down the company’s massive current debt, but evidently, these are typically studying the White House financials, because they say the raised funds will go towards brand new casino tasks in the U.S., as well as more online development, along with 888 Holdings, to acquire a few on-line casino web sites up and rolling in New Jersey when that state goes online on November 26. They must be in a pissing competition with Obama for the highest achievable debt ceiling.
Gambling’s Highest Debt Load
Think we are kidding? Caesars has the dubious honor of keeping the casino industry’s highest-ever debt that is long-term at $23.5 billion. In early 2014, they will perform a refi of about $5 billion of that, and got about $200 million towards that amount in a stock sale already.
This debtload that is somewhat scaryn’t seem to be deterring anyone from teaming up with the gaming behemoth though; Detroit-based Rock Gaming is in on a joint venture with Caesars to own and operate the $400 million Horseshoe Baltimore once it’s completed and willing to open in 2015. And Suffolk Downs Racetrack in Boston went into partnership with all the business as well, as they you will need to get their $1 billion casino project accepted and built in Boston in Massachusetts’ Battle associated with Casino Giants game.
Seems even Caesars Deputy General Counsel Michael Cohen isn’t entirely sure about this restructuring gameplan, however.
‘Compared to our capital structure, that’s not a big change,’ he told the Nevada Gaming Control Board about the business’s spinoff concept when they signed down on the plan in July. ‘Caesars features a great deal of debt. We think it’s manageable, but others disagree.