Seeking Alpha

Caesars -5.8% AH on news of 7M-share offering

At current levels, Caesars' (CZR) offering would yield gross proceeds of $139M. Underwriters will have a 1.05M-share overallotment option. (PR)

The casino owner ended 2013 with over $3B in cash/investments, and a whopping $21.1B in debt.

Earlier: Caesars closing Mississippi casino

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Comments (1)
  • Howard Jay Klein
    , contributor
    Comments (290) | Send Message
    This is a reflection of the ongoing drama of a great company confronted by its
    own hubris. The move to bring equity onto the terrible balance sheet makes
    sense. Were FY13 operating results better, offering would have been bigger.
    Key question is for the private equity owners: At what point could they conceive
    bailing given the numbers as they now sit? Distractions of off balance sheet
    moves don't count as much as sustained improved operating EBIDTA. Cash
    flows are good indicating company management keeping enough of an eye
    on the ball but making it and turning all free cash over to debt service is
    a dead end street and company knows it. This may be a toe-in-the-water
    test for a much larger offering downstream. Equity offerings and continued
    sales of lesser performing properties in mature markets might make for
    a smart strategic plan going forward.
    Full scale study of Caesars history and leadership coming in next issue of
    Casino Management
    30 Mar 2014, 03:05 AM Reply Like
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