Caesars CEO eyes debt deal, says can finance $5B Japan expansion


Caesars Entertainment's (CZR +0.4%) Gary Loveman says the casino company likely will strike a debt restructuring deal with its bondholders within a year, and should also be able to finance an expansion into the Japanese market that would require at least a $5B investment.

CZR's debt carries a speculative grade rating, but the CEO says CZR's finances will not put it at a disadvantage as it seeks a license in Japan, where a bill to legalize casinos could be put to a vote in parliament this year.

CZR, Las Vegas Sands (LVS) and MGM Resorts (MGM) are among the global gambling operators pledging to spend billions of dollars to build resorts in what’s projected to become Asia’s largest casino market after Macau.

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Comments (3)
  • nuatthis
    , contributor
    Comments (60) | Send Message
     
    CZR is a disaster and Loveman has been a terrible boss for the company, which used to be the best in the industry. The company's US markets are in terrible shape, its debt is overwhelming in the face of pressured cash flow, and its bondholders are justifiably after it for the fraudulent conveyances of a number of its gaming assets. Any lender refinancing its debt will wind up being sued by its shareholders when the debt gets written off. The company is a terrific short candidate, and buying puts is the way to do it.
    26 Jun 2014, 10:40 AM Reply Like
  • Trader's Profit Compass
    , contributor
    Comments (2068) | Send Message
     
    $CZR dream on. Why would Japan grant a license to you when the cream of the crop....LVS / WYNN / MPEL could write a $5B - $10B check on the spot and start digging the footers ASAP
    26 Jun 2014, 11:54 AM Reply Like
  • freeman8201
    , contributor
    Comments (820) | Send Message
     
    Yes, I agree. But Caesar will likely press on. They probably made the biggest mistake when they decline wynn's Macau offer. I doubt anyone gaming corp. could match Adelson's provisional $10B investment. Plus, he's been working with the government and prime minister right?

     

    czr just won a S. Korea gaming license.

     

    Notable CZR shareholders are Paulson & Co., Inc., and Soros Fund Management LLC
    27 Jun 2014, 06:13 PM Reply Like
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