coilman
coilman
Joined: Jan 29, 2012
  • Threads: 136
  • Posts: 1133
onenickelmiracle
onenickelmiracle
Joined: Jan 26, 2012
  • Threads: 212
  • Posts: 8277
February 5th, 2013 at 9:14:25 PM permalink
Quote: coilman

http://www.lvrj.com/business/caesars-seeks-1-5-billion-in-new-debt-189727921.html


Cut them off and put them on unemployment.
I am a robot.
JohnnyQ
JohnnyQ
Joined: Nov 3, 2009
  • Threads: 235
  • Posts: 3600
February 6th, 2013 at 6:07:42 PM permalink
Very Interesting. I have a few race 2 rewards
bucks built up and hope to be able to spend
those for buffets / rooms / etc.
Like the castle in its corner In a medieval game; I foresee terrible trouble And I stay here just the same
treetopbuddy
treetopbuddy
Joined: Jan 12, 2013
  • Threads: 34
  • Posts: 1739
February 6th, 2013 at 6:12:16 PM permalink
Quote: coilman

http://www.lvrj.com/business/caesars-seeks-1-5-billion-in-new-debt-189727921.html

They did small IPO not long ago....."Where are all the customers yachts"?
Each day is better than the next
treetopbuddy
treetopbuddy
Joined: Jan 12, 2013
  • Threads: 34
  • Posts: 1739
February 6th, 2013 at 6:20:33 PM permalink
Quote: treetopbuddy

They did small IPO not long ago....."Where are all the customers yachts"?

correction it was a secondary offer.....whatever
Each day is better than the next
pacomartin
pacomartin
Joined: Jan 14, 2010
  • Threads: 649
  • Posts: 7895
February 7th, 2013 at 11:55:09 AM permalink
On July 14, 2004 Harrah's Entertainment agreed to purchase Caesars Entertainment for over $5 billion.

At the time of the takeover, CET consisted of the following properties.
Bally's Atlantic City, including Claridge Casino at Bally's and Wild Wild West Casino, Atlantic City, New Jersey
Bally's Las Vegas
Caesars Atlantic City, Atlantic City New Jersey
Caesars Windsor, Windsor, Ontario, Canada
Caesars Palace at Sea - no longer on board Crystal Cruises
Caesars Indiana, Elizabeth, Indiana
Caesars Palace Las Vegas
Conrad Resort, Punta Del Este, Uruguay
Flamingo Las Vegas, Las Vegas, Nevada
Flamingo Laughlin, Laughlin, Nevada
Grand Casino Biloxi, Biloxi, Mississippi - Reopened after destruction by Hurricane Katrina
Grand Casino Gulfport, Gulfport, Mississippi - Destroyed by Hurricane Katrina, land sold and new casino Island View Casino
Grand Casino Tunica, Tunica Resorts, Mississippi
Paris Las Vegas
Sheraton Casino and Hotel Tunica, Tunica Resorts, Mississippi

In May 1998 Gary Loveman joined the organization as Chief Operating Officer. He is thought to do for the industry what Ray Kroc did for hamburgers.

When you think about it, Harrah's acquired all those CET properties for $5 billion. Their existing inventory of properties in 2004 was far less extensive. In 1999 Harrah's bought the Rio All Suite Hotel and Casino for $888 million giving the company their 2nd casino in Las Vegas. Later that year, the company moved its headquarters from Memphis, Tennessee to Las Vegas. The bulk of their assets prior to 2004 were in Reno, Laughlin, Tahoe and Atlantic City.

Since 2004 they acquired Imperial Palace and Planet Hollywood at fire sale and a bunch of minor properties and racinos around the country.

Now, how unbelievable is it that their debt has ballooned to over $20 billion in less than a decade. It is not like they built a City Center.
whatme
whatme
Joined: Apr 28, 2011
  • Threads: 8
  • Posts: 193
February 7th, 2013 at 9:10:35 PM permalink
Quote: pacomartin

Now, how unbelievable is it that their debt has ballooned to over $20 billion in less than a decade. It is not like they built a City Center.



It is my understanding that the 2004 buyout for $5 bill was PLUS DEBT.

I find it hard to believe that $5b would get all those (see above) properties with no debt.

Just like people think the trump marina sold for about $40 million and that's it. Some news reports (not looking them up) reported $300-400 million in debt, the $40m was just to buy the debt!!!
Ibeatyouraces
Ibeatyouraces
Joined: Jan 12, 2010
  • Threads: 68
  • Posts: 11933
February 7th, 2013 at 9:57:43 PM permalink
deleted
DUHHIIIIIIIII HEARD THAT!
pacomartin
pacomartin
Joined: Jan 14, 2010
  • Threads: 649
  • Posts: 7895
February 7th, 2013 at 10:02:05 PM permalink
Quote: whatme

It is my understanding that the 2004 buyout for $5 bill was PLUS DEBT.



Harrah's Inc was taken private by affiliates of Leon Blackís Apollo Global Management LLC and David Bondermanís TPG Capital for $30.7 billion in 2008. Any debt that they acquired in the takeover in 2004 was comparatively minimal.

I don't remember the exact numberfor Ceasars buyout in 2004, but I saw it again and again with the buyout of Hard Rock, of Stratosphere, and others. The companies were carrying normal kind of debt that was occurred through the years by construction, capital improvements, and buyouts, Then in the great private equity rush, these companies all assumed huge debts on the gamble that future growth would easily pay these debts.

Talk about Martingale.
onenickelmiracle
onenickelmiracle
Joined: Jan 26, 2012
  • Threads: 212
  • Posts: 8277
February 8th, 2013 at 1:52:56 AM permalink
Quote: JohnnyQ

Very Interesting. I have a few race 2 rewards
bucks built up and hope to be able to spend
those for buffets / rooms / etc.


That explains the Harrah's AC $700 marina tower price quotes for NYE.
I am a robot.

  • Jump to: