October 17 will see investors given the opportunity to buy into the burgeoning US online gambling business.
Caesars Entertainment Corp. has set October 17 as the record date for rights to participate in a planned $1.18 billion stock sale that will include an interest in its burgeoning online gambling business, the Reuters news agency reported Friday.
On that date investors will be given the right to buy one share of Caesars Acquisition Co. for each share of the parent company they own.
The new company will be part owner, with Caesars, of a business dubbed Caesars Growth Partners that will be home to the company’s interactive gaming and two casinos.
Caesars Entertainment has a debt burden of over $23 billion after a 2008 leveraged buyout, and is raising the money for projects such as online gaming and new land casinos.
Reuters reports that in the past week, the company refinanced $4.9 billion in mortgage-backed securities and other debt, while raising $200 million in a stock offering.
Caesars is controlled by TPG Capital and Apollo Global Management LLC; the stock was priced at $20.67 in New York Thursday, and has almost tripled in value this year.