Caesars’ 15% Shows Loveman’s Difficult World: Corporate Finance
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Caesars Entertainment Corp. bonds with an average yield of almost 15 percent are indicating the largest U.S. casino owner will have to restructure its $19.9 billion of borrowings by 2016.
While other U.S.-based gaming-company debt yields an average 9.18 percent, according to Bank of America Merrill Lynch index data, Las Vegas-based Caesar’s bonds with maturities of more than three years have spreads to peers that show investors are concerned it won’t be able to service its longer-term borrowings.