- Caesars and its subsidiary, CEOC, are in formal talks with first-lien bondholders to restructure $6B in debt.
- Caesars has transferred significant assets from CEOC to other subsidiaries, including CERP and Caesars Growth Partners.
- First and/or second-lien bondholders will most likely ask that Caesars unwind these transactions prior to any restructuring.
- Given $24B in debt and an enterprise value of $12 - 15B, a restructuring will most likely result in a debt for equity swap.
- Caesars' equity is worthless and any debt restructuring will be highly dilutive. Caesars is a short.