Wednesday December 24,2014 : CAESARS ENTERTAINMENT TO MERGE WITH CAESARS ACQUISTION CO
Debt restructuring and the formation of a REIT
Caesars Entertainment Corporation (CEC) will merge with Caesars Acquisition Company (CAQC), established in 2013, in an all-stock merger deal that will enable subsidiary Caesars Entertainment Operating Company (CEOC) to ultimately restructure as a real estate investment trust (REIT) as it moves ahead with plans for a voluntary Chapter 11 reorganisation bankruptcy filing scheduled for early next year.
“The highly efficient REIT structure would enable CEOC to maximize its value and provide the most financial recovery to each of CEOC’s creditor groups,” said Gary Loveman, chairman and chief executive officer of Caesars Entertainment and chairman of CEOC.
“The formation of a publicly traded REIT would also allow CEOC to significantly reduce its leverage by creating two better capitalized companies with vastly improved cash flow generation.”
Loveman will remain as chairman and chief executive officer of the combined Caesars Entertainment until the end of 2016.
Industry veteran Mitch Garber will continue to serve as chief executive officer of Caesars Interactive Entertainment and will take on the role of vice-chairman of the combined company.