Caesars announces sale of $1.2bn in senior notes
Bonds have interest rate of 4.625%, mature in 2029
Caesars Entertainment announced on September 10 that it will be selling $1.2bn in senior notes, with the bonds set to come in 2029 at 4.625%.
Caesars intends to apply the proceeds to settling a previous issuance of senior notes totaling $1.7bn, effectively using the corporate debt sales in concert with one another. The previous bonds are set to mature in 2025 at 5.250%.
The new offering, which is expected to begin on September 24, was increased by $200m from the initial announcement of $1bn, an indicator that commercial paper from the gaming industry is in strong demand.
It also continues a trend of gaming companies meeting few barriers when it comes to capital infusion. VICI Properties recently announced it was selling up to 115 million shares to fund its acquisition of a trio of assets – the Venetian, Palazzo, and Sands Expo and Convention Center – from Las Vegas Sands.
The current 10-year Treasuries rate is around 1.3%, which could make the bonds attractive to investors. Moody’s changed Caesars’ outlook from negative to stable in August.