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FACTBOX-A new Caesars Entertainment to emerge from bankruptcy
October 5, 2017 / 9:27 PM / in 16 days

FACTBOX-A new Caesars Entertainment to emerge from bankruptcy

    WILMINGTON, Del., Oct 5 (Reuters) - The operating unit of
Caesars Entertainment Corp         will emerge from an $18
billion bankruptcy as soon as Oct. 6 in a deal that will
transform the entire corporate family of the casino and resort
operator.             
    The restructuring plan settles claims by creditors of the
operating unit that private equity firms that control Caesars
stripped the unit of billions of dollars of assets before
putting it into bankruptcy in 2015.
    Creditors claim that Apollo Global Management         and
TPG Capital Management LP, which led a 2008 leveraged buyout of
Caesars, created affiliates to put choice properties out of
reach of creditors.
    The bankruptcy exit plan brings various assets back under
the control of Caesars Entertainment Corp by merging the parent
with Caesars Acquisition Corp          and other affiliates, and
transferring stakes to creditors.
    
    The following are the key points of the new Caesars
Entertainment Corp after its operating unit emerges from
bankruptcy, based on regulatory and court documents:
    
    Ownership structure of the new Caesars Entertainment Corp:
    - 59.2 percent owned by creditors of Caesars Entertainment
Operating Co
    - 32.1 percent owned by shareholders of Caesars Acquisition
Corp 
    - 8.7 percent owned by shareholders of Caesars Entertainment
Corp
    
    Debt structure
    The new Caesars will have about $9.6 billion in debt,
compared to $25.6 billion prior to bankruptcy, and roughly $2
billion in cash.
    
    Split of Caesars Entertainment Operating Co 
    The bankrupt operating unit will emerge from bankruptcy as
two separate entities, a new operating company and a property
company. The new operating company will be a subsidiary of the
new Caesars and will lease the properties it operates from a
newly created, independent real estate investment trust, or
REIT.
    Creditors of the bankrupt operating unit will own the REIT
and it will have one tenant, the new operating company. The REIT
will collect an initial annual rent of around $165 million from
Caesars Palace in Las Vegas and around $465 million from a
separate agreement for about 20 other locations. 
    The 20 locations include Nevada casinos outside Las Vegas, a
Bally's and a Caesars in Atlantic City, and Harrah's and
Horseshoe casinos along the Gulf Coast and in Missouri, Iowa,
Illinois and Indiana.
    
The new Caesars will operate approximately 47 casinos in 13 U.S.
states and five countries, including the Caesars, Harrah's,
Horseshoe and Bally's brands. 
    A sample list of Caesars locations
    Name            casino space            hotel rooms
Harrah’s Atlantic City    155,200            2,590    
Harrah's New Orleans    125,100            450
Caesars Palace Las Vegas    124,500            3,980
Horseshoe Baltimore        122,000            --
Bally’s Atlantic City    121,600            1,250
    
Rio All-Suites Hotel & Casino
    (Las Vegas)        117,300            2,520    
Caesars Atlantic City    115,000            1,140    
Paris Las Vegas        95,300                2,920    
Harrah's Las Vegas        90,600                2,530
Flamingo Las Vegas        72,300                3,460
Bally’s Las Vegas        68,400                2,810
Planet Hollywood Resort & Casino
    (Las Vegas)        64,500                2,500
The Cromwell (Las Vegas)    40,000                190
The LINQ Hotel & Casino
    (Las Vegas)        31,900                2,250

    
    

 (Reporting by Tom Hals in Wilmington, Delaware; Editing by
Meredith Mazzilli)
  

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