Everybody wants an item of Atlantic City’s casinos these days, it appears
Ah, the Atlantic Club in Atlantic City: the lady that everybody wants to sleep with, but no body will marry. This nj-new Jersey land gaming joint keeps on finding new suitors, however, and now an one that is new popped through to the horizon: a local attorney-slash-entrepreneur, George Miller, who’s developed an investment team utilizing The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this estate that is real are eyeing all types of East Coast casinos, with the goal of firming something up before New Year’s 2014 strikes midnight in the clock.
Atlantic Club Simply One Contender
While Miller won’t come right out and say who is looking like they’ll certainly be getting a diamond just yet, he did inform the Press of Atlantic City his team hasn’t eliminated the Atlantic Club being a contender, but that they were ‘looking all over the area’ for just the spot that is right make their deal.
The situation is created a bit more interesting for the reason that both Miller and Flynn hold very small stakes in A pennsylvania that is caesars-run property albeit just a 0.25per cent stake each. Press of Atlantic City interviewer Donald Wittkowski shows that this minor alliance could help the duo, as Caesars has four casinos in Atlantic City and may be willing to part with one. You might recall that Caesars’ international debt-load is sky-high, and some cash right now might be above welcomed as some of their notes are coming due in 2015. Rumors are that possibly Trump Plaza, Golden Nugget and Revel along with Caesars’ Showboat might all be getting sexy glances from Miller and Flynn right now.
It looks like it is a sellers market these days, however; also in line to buy something in Atlantic City most likely to then get in position getting an interactive video gaming license for AC’s imminent Internet launch are clothes like PokerStars, possibly Kentucky’s Churchill Downs horse racing operation, as well as Philly’s SugarHouse casino owners are considered looking to expand in to the Atlantic City market. Uk operators 2UP Gaming is additionally reported become thinking about AC, backed evidently by the unnamed Asian mogul.
Among the list of properties allowing it to be known they might be designed for the best cost are the now-infamous Atlantic Club, the Plaza (which killed a potential cope with the West Coast’s Meruelo Group for $20 million when the casino’s main mortgage holder Carl Icahn said ‘I do not think so’ to your low-ball offer), along with the Golden Nugget and poor ol’ Revel, which just can’t appear to stand up, it’s therefore debt-heavy at the top.
Needless to say, you could wonder why a town whose casinos are doing this generally speaking awful into the net earnings division is being therefore eagerly courted by numerous these days, and the apparent response is both the interactive gaming potential (you can’t obtain an online operator’s license without getting a land casino) too as the seemingly vague potential for the legalization of sports betting in Atlantic City’s land gambling enterprises, that has been shot down more times than an Iranian war plane over the White home.
Regardless, Miller claims his investment group is doing its due diligence about any of it market. Despite Atlantic City’s crappy revenue ledgers the past several years, he claims he sees ‘a lot of good regarding the horizon.’
Caesars Entertainment Rearranges Deck Furniture for Debt Restructuring
Caesars Entertainment is doing a lot of restructuring, but does it help their financially sinking ship?
Can this level of Titanic debt be salvaged from dragging the ship to your bottom regarding the monetary ocean? That is the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of the kingpin Las Vegas Strip properties as a new holding company, along side the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The company has instructed its shareholders they have only until Oct. seventeenth to have in for a stock fire sale to make $1.18 billion in much-needed cash infusions as well. And you thought your garage sales were busy.
The Securities and Exchange Commission (SEC) filing made by Caesars announces that shareholders will get first dibs on one share each of the newest Caesars Acquisition Co. (CAC) for every share for the existing parent business they own. This restructuring has been in the works because this Spring that is past ended up being officially authorized by the Nevada Gaming Control Board in July.
Under the restructuring, the newly created CAC would have been a partial owner of the also newly created Caesars Growth Partners, and along with Caesars Entertainment (are you dizzy yet?), the brand new entity will obtain Planet Hollywood, the Baltimore under-construction property, and Caesars Interactive Entertainment, which, of program, spearheads the World Series of Poker (WSOP) a real income online poker brand that just recently launched for Nevada Internet players.
Now you might think the purpose of all this fundraising is to pay the company down’s massive existing debt, but evidently, they have been studying the White House financials, because they do say the raised funds will go towards brand new casino jobs in the U.S., in addition to more online development, along with 888 Holdings, to obtain a few online casino web sites up and rolling in New Jersey when that state goes online on November 26. They must be in a pissing contest with Obama for the greatest debt ceiling that is achievable.
Gambling’s Highest Debt Load
Think we’re kidding? Caesars has the dubious honor of keeping the casino industry’s highest-ever long-lasting financial obligation load at $23.5 billion. In early 2014, they shall execute a refi of about $5 billion of that, and got about $200 million towards that amount in a stock sale already.
This somewhat scary debtload doesn’t be seemingly deterring anyone from teaming up with the gaming behemoth though; Detroit-based Rock Gaming is in on a joint venture with Caesars to own and run the $400 million Horseshoe Baltimore once it’s completed and prepared to open in 2015. And Suffolk Downs Racetrack in Boston moved into partnership with the business because well, as they you will need to obtain $1 billion casino project accepted and built in Boston in Massachusetts’ Battle of the Casino Giants game.
Looks even Caesars Deputy General Counsel Michael Cohen isn’t totally sure about this restructuring gameplan, nevertheless.
‘Compared to our money structure, that’s not a big change,’ he told the Nevada Gaming Control Board about the organization’s spinoff concept once they signed down on the plan in July. ‘Caesars features a complete lot of debt. We think it is manageable, but others disagree.