Reuters reported Caesars Entertainment said more than 39% of senior bondholders backed a restructuring plan, bringing it closer to a key level of creditor support, and it released details of how the reorganized casino company will operate.
According to Reuters, Caesars detailed lease agreements for Caesars Palace Las Vegas and other properties and new debt issuance for its operating unit, which it plans to put into bankruptcy next month and then split into a casino operator and property company.
Reuters reported Caesars said the bankruptcy will reduce debt to $8.6 billion from $18.4 billion for its operating unit, which runs 44 casinos in 13 states.
According to Reuters, Caesars said securities filing the restructuring will include two separate leases: one for Caesars Palace Las Vegas and a separate lease for certain other Caesars properties.
Reuters reported the Caesars Palace Las Vegas lease includes a base rent of $160 million for the first five years, while the base rent for the other properties will be $475 million for the first three years.
According to Reuters, the operating company will also issue about $1.7 billion in new debt and the property company will issue $3.8 billion in new debt. Caesars Palace Las Vegas will issue $2.6 billion in new debt.
To view the full Reuters report, click here.
Previously on abfjournal: Caesars Poised for Massive Debt Restructuring, August 4, 2014