Deals
Banks Promised $7 Billion for a Casino Deal. Then the Coronavirus Hit
- JPMorgan-led group backed Eldorado’s takeover of Caesars
- Now they face challenge of getting bond, loan buyers on board
Photographer: Paul Yeung/Bloomberg
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Banks that agreed to provide over $7 billion of loans for Eldorado Resorts Inc.’s acquisition of Caesars Entertainment Corp. face an uphill battle to offload the debt to investors as fears over the coronavirus outbreak wreak havoc across the travel and leisure industry.
JPMorgan Chase & Co., Credit Suisse Group AG and Macquarie Group Ltd. agreed to the financing last June. Now, with the takeover expected to close as soon as next month, the underwriters are confronting a tight window to sell bond and loan buyers on the idea of lending to a highly leveraged gaming company just as Americans cancel their vacations, casinos empty out and the conference scene grinds to a halt.