Casino operator Caesars Entertainment Corp said it would spin off assets, with takeover firms Apollo Global Management LLC and TPG Capital LP investing $250 million each in a new business free from the shackles of the company's debt.The deal could raise up to $1.2 billion for Caesars, which was taken private by a consortium led by the two private equity firms in 2008 for $30.7 billion, went public last year, and is struggling to cope with a debt mountain in excess of $24.1 billion.Caesars shares leaped 34 percent after the announcement to a one-month high of $16.76 as investors welcomed the terms of the deal.Caesars said on Tuesday it would retain majority ownership of a newly created entity, Caesars Growth Partners LLC, that will raise cash from TPG, Apollo and existing Caesars shareholders to purchase assets from Caesars.
Apollo Global Management, LLC (Apollo) is a global alternative asset manager. Shares of APO traded higher by 2.47% or $0.62/share to $25.77. In the past year, the shares have traded as low as $10.42 and as high as $27.56. On average, 831521 shares of APO exchange hands on a given day and today's volume is recorded at 526860.
Caesars Entertainment Corporation provides casino entertainment services. Shares of CZR traded higher by 24.34% or $3.04/share to $15.53. In the past year, the shares have traded as low as $4.52 and as high as $18.37. On average, 1207910 shares of CZR exchange hands on a given day and today's volume is recorded at 3348331.
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