Senior bondholders in Caesars Ent. seek to reduce debt -Bloomberg

Sat Aug 2, 2014 1:22pm EDT

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Aug 2 (Reuters) - A group of senior bondholders holding debt in a unit of U.S. casino operator Caesars Entertainment Corp. has hired advisers to negotiate a deal to reduce debt at the unit, Bloomberg reported on Saturday.

Quoting two people familiar with the situation, Bloomberg said the group, which holds parts of Caesars Entertainment Operating Co.'s first-lien bonds, was holding talks with investment bank Miller Buckfire & Co. and law firm Kramer Levin Naftalis & Frankel LLP.

It said the two firms had signed confidentiality agreements so they can have access to sensitive information as they seek a deal.

Caesars Entertainment Operating Co (CEOC), which is owned by Apollo Global Management LLC and TPG Capital, on Wednesday said it had taken steps for a significant deleveraging ahead of a planned stock listing, including the appointment of senior executives.

"These actions follow the completion of the previously announced $1.75 billion first-lien debt offering and associated redemption of existing 2015 maturities as well as a paydown of $800 million of bank facilities maturing in 2016; the sale by Caesars Entertainment of 5 percent of CEOC's equity to institutional investors; the closing of the previously announced asset sales; and the amendment of CEOC's credit facility," the unit said in a statement on Wednesday.

Bloomberg said that Gary Thompson, a spokesman for Caesars, Phillipa Yule, a spokeswoman for Kramer Levin, and Chuck Dohrenwend, a spokesman at Abernathy MacGregor Group for Miller Buckfire, declined to comment. Bud Perrone, a spokesman for Apollo at Rubenstein Associates Inc., and Lisa Baker, a spokeswoman for TPG at Owen Blicksilver Public Relations Inc., also declined to comment. (Washington Breaking News Team; Editing by Leslie Adler) ((+1-202-898-8322)(sandra.maler.thomsonreuters.com@reuters.net) )

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