Started by andybflo on Monday, 10th February 2014 12:17 pm
Last response by nullzero00 12th February 7:13am
So, after years of people here, and in the investment world being afraid of Caesars Entertainment's debt....
Apparently Loveman just realized havinf -$817MM in cashflow Year over Year and $20B in debt might not be the smartest thing in the world.
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HedgedBettor responded on Monday, 10th February 2014
You can bet your bottom dollar it ain't Gary Loveman making these decisions. Its the sharks at TPG and especially Apollo. They reason they'll be looking into a restructuring now is that they've gained control of enough of the senior debt and hived off enough of the interesting growth assets (like online) into their own hands that they're ready to ream the bondholders but good. Gary is just there to keep what cashflow there is coming in.
Drake responded on Tuesday, 11th February 2014
Good thing Caesars bought the shuttered-up Atlantic Club Casino Hotel on the Atlantic City boardwalk, cuz what they really need most in the world right now is a fifth casino in that booming gambling mecca. That'll fix everything.
andybflo responded on Tuesday, 11th February 2014
Well, they bought the hotel tower, with exactly that idea...
I think they're trying to stop anyone else from opening another casino, not trying to open an additional one. I visited AC three years ago; being a Philly native (moved when I was 10, in 1985) and kid growing up in the area, I remember going there in it's heyday. And my parents, grandparents, etc raving about it.
It's a hole. With too many rooms. And Revel, though gorgeous, put the final nail in that coffin. Caesars might actually have the right idea by blocking off access to another casino. That money may actually improve their take in a bad region.
I don't see AC coming back. Really ever. Unless something so off the radar happens there that it blows peoples' minds. I flew myself in to Atlantic City Airport, and from a few thousand feet, the blight in the town is amazing. The AC Expressway takes you around all that; the town is much worse than the average commuter into town sees.
Wynn and MGM should both be glad they don't have a serious interest in that town (The Borgata, I know, but it's not the same level of exposure CZR has.)