Baby Procedures Towards Legalization At Last
Oversight Group Will Be Cabinet-Level
Buyers and Sellers Dance the Dance with Atlantic City Casinos
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 rest 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 up on the horizon: a local attorney-slash-entrepreneur, George Miller, who’s developed an investment group using The Flynn Company CEO Kevin Flynn of Philadelphia. Apparently, this real estate duo are eyeing all kinds of East Coast casinos, with the target of firming something up before New 12 months’s 2014 strikes midnight on the clock.
Atlantic Club Just One Contender
While Miller won’t come right out and state who is searching like they will be getting a diamond just yet, he did inform the Press of Atlantic City their group hasn’t eliminated the Atlantic Club being a contender, but that they were ‘looking all over the area’ for just the right spot to make their deal.
The situation is made a bit more interesting in that both Miller and Flynn hold really small stakes in A caesars-run pennsylvania property; albeit only a 0.25% stake each. Press of Atlantic City interviewer Donald Wittkowski implies that this alliance that is minor help the duo, as Caesars has four casinos in Atlantic City and could be willing to part with one. You may recall that Caesars’ international debt-load is sky-high, and some cash right now might be a lot more than welcomed as a few 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.
Plenty of Inventory Up for Grabs
It looks like it is a sellers market these times, however; also in line to buy something in Atlantic City almost certainly to then get constantly in place getting a gaming that is interactive for AC’s imminent Internet launch are outfits like PokerStars, possibly Kentucky’s Churchill Downs horse racing operation, and even Philly’s SugarHouse casino owners are said to be looking to expand into the Atlantic City market. British operators 2UP Gaming is also reported become enthusiastic about AC, backed apparently by the unnamed mogul that is asian.
On the list of properties allowing it to be known they are able to be available for the right price 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 said ‘I don’t think so’ to the low-ball offer), in addition to the Golden Nugget and poor ol’ Revel, which just can not appear to stand up, it’s so debt-heavy during the top.
Of course, you might wonder why a town whose casinos are doing this generally awful in the net earnings department will be therefore eagerly courted by a lot of these days, and the answer that is obvious both the interactive gaming potential (you can’t obtain an online operator’s license without getting a land casino) also as the seemingly vague potential for the legalization of sports betting in Atlantic City’s land casinos, which includes been shot down more times than an Iranian war air plane over the White home.
Regardless, Miller claims his investment group is doing its diligence that is due about market. The previous few years, he says he views ‘a lot of good regarding the horizon. despite Atlantic City’s crappy profit ledgers’
Caesars Entertainment Rearranges Deck Furniture for Debt Restructuring
Caesars Entertainment is doing a lot of restructuring, but can it help their economically sinking ship?
Can this level of Titanic debt be salvaged from dragging the ship to the base regarding the ocean that is financial? That is the question being asked as Caesars Entertainment Corp. put Planet Hollywood one of the kingpin Las vegas, nevada Strip properties right into a new holding company, along with the Interactive Division and the still-being-built Horseshoe Casino Baltimore. The business has instructed its shareholders that they have only until Oct. seventeenth getting in on a stock fire sale to generate $1.18 billion in much-needed cash infusions as well. And you thought your storage sales were busy.
Shareholders Can Purchase Stocks First
The Securities and Exchange Commission (SEC) filing made by Caesars announces that shareholders are certain to get first dibs on one share each of the brand new Caesars Acquisition Co. (CAC) for every single share associated with the existing parent business they own. This restructuring was into the works because this Spring that is past was officially approved by the Nevada Gaming Control Board in July.
Underneath the restructuring, the newly formed CAC is a partial owner of the also newly created Caesars Growth Partners, and along with Caesars Entertainment (are you dizzy yet?), the new entity will possess Planet Hollywood, the Baltimore under-construction property, and Caesars Interactive Entertainment, which, of course, spearheads the World Series of Poker (WSOP) real money online poker brand that just recently launched for Nevada Internet players.
Now you might think the idea of all this fundraising is to pay the company down’s massive current debt, but apparently, they are studying the White House financials, because they do say carte the lucky nugget saloon the raised funds will go towards brand new casino projects in the U.S., as well as more online development, in conjunction with 888 Holdings, to get a few on-line casino sites up and rolling in New Jersey whenever that state goes online on November 26. They must be in a pissing contest with Obama for the highest achievable debt ceiling.
Gambling’s Highest Debt Load
Think we’re joking? Caesars has the dubious honor of keeping the casino industry’s highest-ever debt that is long-term 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 somewhat frightening debtload doesn’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 run the $400 million Horseshoe Baltimore once it’s completed and prepared to start in 2015. And Suffolk Downs Racetrack in Boston went into partnership using the company since well, as they try to manage to get thier $1 billion casino project accepted and built in Boston in Massachusetts’ Battle associated with Casino Giants game.
Seems even Caesars Deputy General Counsel Michael Cohen isn’t entirely sure about this restructuring gameplan, nonetheless.
‘Compared to our money structure, that’s not a big change,’ he told the Nevada Gaming Control Board about the business’s spinoff concept if they signed off on the plan in July. ‘Caesars has a lot of debt. We think it’s manageable, but others disagree.