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 [HAMLEO.UL] 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)