IPO Preview: Caesars Entertainment

| About: Caesars Entertainment (CZR)
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Based in Las Vegas, Nevada, Caesars Entertainment (proposed ticker CZR) scheduled a $16 million IPO with a market capitalization of $1.125 billion at a price range mid-point of $9 for Tuesday, February 7, 2012.

CZR is one of nine IPOs scheduled for this week (see our IPO calendar).


This is a very strange offering. CZR is selling 1% of the company but is 'shelf registering' another 65% of the equity, see below. CZR's finances are a disaster-- with $20 billion in debt, annualized losses for the September 2011 nine months of $600 million, and $7 billion negative tangible book value.


CZR is the world's most diversified casino-entertainment provider and the most geographically diverse U.S. casino-entertainment company.

The business is primarily conducted through a wholly owned subsidiary, Caesars Entertainment Operating Company, Inc., or CEOC, although certain material properties are not owned by CEOC.

As of September 30, 2011, CZR owned, operated or managed-- through various subsidiaries-- 52 casinos in 12 U.S. states and seven countries. The vast majority of these casinos operate in the United States and England, primarily under the Caesars, Harrah's and Horseshoe brand names in the United States.

CZR's casino entertainment facilities include 33 land-based casinos, 12 riverboat or dockside casinos, three managed casinos on Indian lands in the United States, one managed casino in Canada, one casino combined with a greyhound racetrack, one casino combined with a thoroughbred racetrack and one casino combined with a harness racetrack. CZR's 33 land-based casinos include one in Uruguay, nine in England, one in Scotland, two in Egypt and one in South Africa.

Registering 66% of the company
CZR is registering a maximum of
$20 million to be sold by the company
$223 million to be sold by shareholders
$500 million to be sold on a continuing basis by the company
$746 million total


$13.1 for working capital


CZR tried to IPO in November, 2010. Here is our review for that failed CZR IPO effort.


CZR doesn't look anybetter now than it did in November, 2010.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: Caesars Entertainment IPO is scheduled for Tuesday & CZR is the focus ticker.