Everybody wants a piece of Atlantic City’s casinos these full days, this indicates
Ah, the Atlantic Club in Atlantic City: the girl that everybody wants to sleep with, but nobody will marry. This nj-new Jersey land gaming joint keeps on finding new suitors, however, and now a brand new one has popped through to the horizon: a local attorney-slash-entrepreneur, George Miller, who’s produced an investment group aided by The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this estate that is real are eyeing all types of East Coast gambling enterprises, with the goal of firming something up before New Year’s 2014 strikes midnight regarding the clock.
Atlantic Club Simply One Contender
While Miller won’t come right out and state who is looking like are going to getting a diamond just yet, he did inform the Press of Atlantic City his group hasn’t eliminated the Atlantic Club as a contender, but that they were ‘looking all over the spot’ for just the spot that is right make their deal.
The situation is manufactured 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 0.25% stake each. Press of Atlantic City interviewer Donald Wittkowski suggests that this minor alliance could assist the duo, as Caesars has four casinos in Atlantic City and could be prepared to part with one. You might recall that Caesars’ international debt-load is sky-high, and some cash right now might be more than welcomed as a few of their records are coming due in 2015. Rumors are that possibly Trump Plaza, Golden Nugget and Revel along with Caesars’ Showboat might all be getting glances that are sexy Miller and Flynn right now.
Lots of Inventory Up for Grabs
It looks like it is a sellers market these times, though; additionally in line to buy something in Atlantic City likely to then get in place to get a gaming that is interactive for AC’s imminent Internet launch are outfits like PokerStars, possibly Kentucky’s Churchill Downs horse racing operation, and also Philly’s SugarHouse casino owners are considered looking to expand in to the Atlantic City market. Uk operators 2UP Gaming is also reported become enthusiastic about AC, backed apparently by an unnamed Asian mogul.
One of the properties letting it be known they are able to be available for the best cost are the now-infamous Atlantic Club, the Plaza (which killed a potential deal with the West Coast’s Meruelo Group for $20 million when the casino’s main mortgage holder Carl Icahn stated ‘I don’t think therefore’ towards the low-ball offer), also the Golden Nugget and poor ol’ Revel, which simply can’t seem to stand up, it’s so debt-heavy during the top.
Of course, you may wonder why a town whose casinos are doing this generally speaking awful in the web profits division is being so eagerly courted by many these days, and the answer that is obvious both the interactive gaming potential (you can’t obtain an online operator’s license without possessing a land casino) also as the seemingly vague potential for the legalization of sports betting in Atlantic City’s land casinos, which has been shot down more times than an Iranian war air plane over the White House.
Regardless, Miller claims their investment group is doing its diligence that is due about market. The previous few years, he claims he views ‘a lot of good in the horizon. despite Atlantic City’s crappy profit ledgers’
Caesars Entertainment Rearranges Deck Furniture for Debt Restructuring
Caesars Entertainment is doing plenty of restructuring, but does it help their financially sinking ship?
Can this quantity of Titanic debt be salvaged from dragging the ship to the base associated with the economic ocean? That’s the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of their kingpin Las vegas, nevada Strip properties into a new company that is holding along with the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The company has instructed its shareholders that they have only until Oct. 17th to get in for a stock fire sale to generate $1.18 billion in much-needed money infusions as well. And you thought your storage sales were busy.
The Securities and Exchange Commission (SEC) filing created by Caesars announces that shareholders will get very first dibs on one share every one of the brand new Caesars Acquisition Co. (CAC) for every share regarding the existing parent company they own. This restructuring happens to be in the works since this Spring that is past had been formally approved by the Nevada Gaming Control Board in July.
Under the restructuring, the newly formed CAC would have been a partial owner of the additionally newly created Caesars Growth Partners, and along with Caesars Entertainment (are you dizzy yet?), the brand new entity will own 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 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’ve been studying the White House financials, because they state the raised funds will go towards brand new casino jobs in the U.S., in addition to more online development, together with 888 Holdings, to obtain a few on-line casino web sites up and rolling in New Jersey when that state goes online on November 26. They must be in a pissing competition with Obama for the greatest achievable debt ceiling.
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 do a refi of about $5 billion of that, and got about $200 million towards that amount in a stock purchase already.
This debtload that is somewhat scaryn’t seem to be 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 operate the $400 million Horseshoe Baltimore once it’s completed and willing to open in 2015. And Suffolk Downs Racetrack in Boston moved into partnership using the business because well, as they make an effort to get their $1 billion casino project accepted and built in Boston in Massachusetts’ Battle associated with the Casino Giants game.
Seems even Caesars Deputy General Counsel Michael Cohen isn’t entirely sure about this restructuring gameplan, but.
‘Compared to our capital structure, that is not a big change,’ he told the Nevada Gaming Control Board about the organization’s spinoff concept when they signed down on the plan in July. ‘Caesars possesses complete lot of debt. We think it’s manageable, but others disagree.