Caesars Entertainment Corporation is officially out of bankruptcy after the global gaming giant completed its merger with Caesars Acquisition Company (CAC) and the restructuring of Caesars Entertainment Operating Company Inc (CEOC).
In a Friday announcement, Caesars said the restructuring – which has seen the company reduce debt by more than US$16 billion since 2015 and reduce interest by around US$250 million – provides the company with an opportunity to expand.
“The conclusion of CEOC’s restructuring leaves Caesars Entertainment with an expected enterprise value of approximately US$20 billion based on [Thursday’s] closing prices,” said Caesars President and CEO Mark Frissora.
“With reduced leverage, increased free cash flow and the new REIT structure, we are positioned with a solid foundation to pursue a diversified growth strategy. Throughout the restructuring process, Caesars has invested significantly to upgrade and renovate its facilities.
“Total capex from 2015 to 2017 is expected to exceed US$1.5 billion, which will benefit the company going forward. We are also executing hundreds of initiatives to generate incremental revenue, as well as to enhance operational efficiency, guest experiences and employee engagement through technology-driven innovation and process improvement.”
Caesars said it will now focus on updating its Las Vegas facilities including the development of a convention center as well as “unlocking new opportunities for organic and inorganic growth across global markets.”
The company is currently preparing to break ground on an integrated resort in Incheon, South Korea, which is due to open in 2020 and has expressed its desire to secure a casino license in Japan.
Caesars also announced a new Board of Directors on Friday, to be chaired by former Chief Financial Officer and Executive Vice President of Walt Disney Parks and Resorts Worldwide, James Hunt.
Frissora will remain an executive member of the board, with Thomas Benninger, John Boushy, John Dionne, Matthew Ferko, Don Kornstein, David Sambur, Richard Schifter, Marilyn Spiegel and Christopher Williams completing the board.
“The completion of the merger and restructuring process present Caesars Entertainment with the opportunity to continue on our path of growth and value creation,” Mr Frissora said. “I look forward to partnering with Jim and all of the members of the incoming board to continue to take steps to unlock new growth opportunities.”
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