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Caesars Entertainment Operating Co. Reveals Further Emergence Plans

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Caesars Entertainment Operating Co. Inc. and its Chapter 11 debtor subsidiaries have engaged certain financial institutions to act as lead arrangers for a new-money financing for the to-be-formed REIT in conjunction with CEOC’s emergence from chapter 11 pursuant to the terms of its confirmed plan of reorganization. J.P. Morgan Securities LLC and Barclays Capital Inc. are intending to solicit indications for up to $2.2 billion of proceeds to refinance the fee and leasehold interests in Caesars Palace Las Vegas.

The iconic, world class, 3,974 room full-service luxury resort and casino is located in the heart of the Las Vegas Strip.

According to a prepared statement, the proceeds from this new-money financing will be used to repay CEOC’s existing indebtedness in accordance with the terms of CEOC’s plan of reorganization.

On January 15, 2015, Caesars Entertainment Operating Co. voluntarily filed for reorganization under Chapter 11 of the United States Bankruptcy Code. On January 17, 2017, CEOC announced that the U.S. Bankruptcy Court for the Northern District of Illinois confirmed CEOC’s Plan of Reorganization, paving the way to conclude CEOC’s court-supervised restructuring process in 2017.

Under the terms of the Plan, CEOC will emerge from bankruptcy, separating virtually all of its U.S. based real property assets from its gaming operations. Caesars Entertainment will continue to own and manage the gaming operations.  The real property assets will be held in a newly created real estate investment trust owned by certain of CEOC’s creditors.