Caesars’ Loan Proposal Pulled From Illinois Board Agenda
Caesars Entertainment Corp. (CZR) will have to wait for approval from Illinois regulators for a $1.75 billion refinancing that’s been opposed by some bondholders.
Mark Ostrowski, administrator of the Illinois Gaming Board, said the panel would delay a decision on whether to support the new loan, citing the absence of board member Lee A. Gould.
“We’ve agreed to pull that from the agenda and put it on another agenda,” Ostrowski said at the hearing today in Chicago.
Representatives of some first- and second-lien debtholders were scheduled to speak at the meeting. They have argued that Caesars was putting the finances of its largest unit, Caesars Entertainment Operating Co., in jeopardy by shifting casino assets to other subsidiaries and stripping away a guarantee of their debt.
Illinois regulators could take a vote on the refinancing at their next meeting set for July 23-24, or earlier if the board were to call a special session, said Gene O’Shea, a spokesman.
Caesars, the largest owner of casinos in the U.S., has been trying to reconcile a decline in consumer spending on gambling with its more than $23 billion in debt. The company has sold stock to the public, refinanced loans and divested some assets.
Shares in the Las Vegas-based company rose less than 1 percent to $17.72 at the close in New York. The stock is down 18 percent this year.
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