Cancelled IPO, but Ceasars Name Remains
November 23, 2010 Leave a comment
Harrah’s still plans to change its name to Caesars Entertainment despite a recently cancelled IPO. The company cancelled the IPO due to “market conditions.”
Harrah’s had planned to change its name to Caesars Entertainment and under the symbol CZR on the Nasdaq Global Select Market. Harrah’s has about $23 billion in long-term debt, but the company has been taking steps to restructure its balance sheet, including issuing new notes to pay off maturing debt.
Analysts said Harrah’s cancelled the IPO because investors thought the price was too high and the company had too much debt. Harrah’s planned to use money from the IPO on two casino development projects in Ohio and to complete an unfinished 660-room hotel tower at Caesars Palace. Harrah’s also recently became involved in an effort to save a troubled casino project in Philadelphia.
In a filing last month, Harrah’s said its two private-equity owners would retain their controlling interests in the company if the company goes public again. Revenues for Harrah’s have fallen from a peak of $10.8 billion in 2007 to $8.9 billion last year, an 18 percent decline. In the third quarter that ended Sept. 30, Harrah’s said its net loss shrank to $164.8 million from a loss of $1.62 billion a year earlier.
Harrah’s operates 10 Vegas Strip casinos, including Caesars Palace, Bally’s, Paris Las Vegas, Planet Hollywood Resort and Harrah’s, along with the off-Strip Rio. The company is considered the world’s largest casino operator with 53 properties in six countries. Harrah’s also owns the World Series of Poker a leading Poker brand.