Caesars’ Bonds Increase on Capital Investment from Apollo, TPGSarika Gangar
Bonds of Caesars Entertainment Corp. rose after the largest owner of U.S. casinos announced a new venture to help finance growth, including a $500 million investment from Apollo Global Management Holdings LLC and TPG Capital LP.
The company’s $3.3 billion of 10 percent, second-lien notes maturing in December 2018 increased 0.8 cent on the dollar to 65.5 cents at 9:03 a.m. in New York, the highest since April 17, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The debt yields 20.6 percent.
The venture, Caesars Growth Partners LLC, intends to use proceeds to buy a stake in Planet Hollywood Resort & Casino in Las Vegas from a Caesars subsidiary, according to a statement today. The investment may increase to $1.2 billion if all subscription rights are exercised in full, Caesars said.
Caesars was acquired by the private equity firms Apollo and TPG for $30.7 billion in 2008.