Caesars Entertainment Corp, the world's largest casino ompany, will purchase back an affiliate it had spun off last year, in a high-stakes financial reshuffle weeks before its main operating unit files for bankruptcy.The parent said on Monday the all-stock purchase of Caesars Acquisition Co will allow it to restructure debt without the need for significant outside financing.Caesars Entertainment Operating Co (CEOC) said on Friday it would file for Chapter 11 bankruptcy by mid-January. The debt has weighed on the unit since a $30 billion leveraged takeover by Apollo Global Management and TPG Capital in 2008, and bankruptcy is expected to slash the debt to $8.6 billion from $18.4 billon."This kind of makes the whole thing work," said Alex Bumazhny, a Fitch Ratings analyst. He said Caesars Acquisition would provide the parent company cash for the operating unit's creditors, which could resolve disputes over various asset transfers.
Caesars Entertainment Corporation, is a diversified casino-entertainment provider. Shares of CZR traded higher by 12.68% or $1.71/share to $15.20. In the past year, the shares have traded as low as $8.51 and as high as $26.74. On average, 1686720 shares of CZR exchange hands on a given day and today's volume is recorded at 2979696.
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