Caesars Set for Distressed Debt Exchange, CreditSights Says
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Caesars Entertainment Corp., the casino operator with more than $24 billion in debt, will probably need to coerce bondholders to exchange their holdings for new securities to cut its borrowing costs and avoid bankruptcy, according to researcher CreditSights Inc.
The owner of Caesars Palace and Harrah’s Las Vegas, which hasn’t had a profitable quarter since at least 2010, may seek to swap a portion of its operating unit’s second-lien debt for payment-in-kind, or PIK, securities, analysts led by Chris Snow wrote today in a report. PIK notes allow borrowers the ability to pay interest with additional debt.