Caesars Entertainment Redeems Outstanding Notes

Caesars Entertainment, Inc. (NASDAQ: CZR) has announced the full redemption of its 5.750% senior secured notes due 2025. The company's indirect wholly-owned subsidiaries, Caesars Resort Collection, LLC and CRC Finco, Inc., have settled the cash tender offer for the outstanding $989,102,000 aggregate principal amount of the notes and intend to redeem all of them on February 16, 2024. The redemption price per note will be 100.183% of the principal amount, in addition to accrued and unpaid interest up to, but excluding, the redemption date.

"With the settlement of the cash tender offer and the forthcoming redemption of our senior secured notes, we are taking proactive steps to manage our capital structure and reduce future interest expenses," said a company spokesperson.

Caesars Entertainment, Inc. is the largest casino-entertainment company in the US and one of the world's most diversified casino-entertainment providers. The company operates resorts primarily under the Caesars®, Harrah's®, Horseshoe®, and Eldorado® brand names, offering diversified gaming, entertainment, and hospitality amenities, as well as a full suite of mobile and online gaming and sports betting experiences.

"We remain committed to delivering value to our guests through exceptional service, operational excellence, and technological innovation, while also prioritizing our employees, suppliers, communities, and the environment," the company spokesperson added.

Following this announcement, the company's shares have moved 1.9% and are currently trading at a price of $43.89.

The company's full 8-K submission is available here.

2018 2019 2020 2021 2022 2023
Revenue (MM) $2,056 $2,528 $3,628 $9,570 $10,821 $11,524
Revenue Growth n/a 22.96% 43.51% 163.78% 13.07% 6.5%
Operating Margins 15% 16% -11% 15% 16% 21%
Net Margins 5% 3% -48% -11% -8% 6%
Net Income (MM) $95 $81 -$1,757 -$1,019 -$899 $710
Net Interest Expense (MM) $172 $286 $1,213 $2,320 -$2,265 -$2,346
Depreciation & Amort. (MM) $157 $222 $583 $1,126 $1,205 $1,238
Earnings Per Share $1.22 $1.03 -$135.15 -$4.83 -$4.19 $3.29
EPS Growth n/a -15.57% -13221.36% 96.43% 13.25% 178.52%
Diluted Shares (MM) 78 78 13 211 214 216
Free Cash Flow (MM) $176 $142 -$725 $679 $41 $695
Capital Expenditures (MM) $147 $171 $164 $520 $952 $1,130
Current Ratio 1.43 0.88 2.41 1.13 0.79 0.73
Total Debt (MM) $6,562 $4,922 $29,096 $14,393 $13,193 $12,455
Net Debt / EBITDA 13.56 7.46 136.6 5.15 4.13 3.17

Caesars Entertainment has rapidly growing revenues and increasing reinvestment in the business and strong operating margins with a positive growth rate. Additionally, the company's financial statements display generally positive cash flows and a strong EPS growth trend. However, the firm suffers from not enough current assets to cover current liabilities because its current ratio is 0.73 and a highly leveraged balance sheet.

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