By Elliot Turner
Today was supposed to be the second of this week's major IPO stories with Caesar’s Entertainment (formerly Harrah’s (HET)) set to rejoin public markets after a 2008 leveraged buyout by Apollo Global Management and TPG Capital. At the time, the two private equity firms paid a whopping $28 billion for the company.
This IPO was being hailed as the first in a wave of private equity firms exiting some of their failed investments from late in the credit bubble days, yet at the last minute the effort was withdrawn citing “market conditions.” We all know that the company is loaded with debt (somewhere around $20 billion worth), but we also know that casino stocks have been cruising of late and all the market indices are trading within spitting distance of two year highs.
So with that being said, I would like to know what “market conditions” could possibly provide for a more favorable IPO environment for the company than today? If the market and casino stocks making highs isn’t enough, what will be? If anyone has some deeper insight to this, give me your thoughts in the comments below…