Caesars Leisure, Inc. mentioned Thursday it has agreed to be acquired by Fertitta Leisure, Inc. in an all-cash transaction valued at roughly $17.6 billion, together with the belief of roughly $11.9 billion of Caesars’ excellent debt. The $31 per share deal represents a 49% premium on Caesars frequent inventory pricing on Feb. 25, the final buying and selling day earlier than rumors surfaced of a possible transaction.
The mixed firm will provide visitors a platform starting from 60 on line casino resorts nationwide to Fertitta’s 600-plus leisure shops. All can be linked by the Caesars Rewards loyalty community, in response to Caesars.
Caesars CEO Tom Reeg, CFO Bret Yunker and president and COO Anthony Carano are anticipated to stay of their roles and proceed to guide the Caesars Leisure operations on the mixed firm. The settlement features a “go-shop” interval by means of July 11, throughout which era Caesars and its monetary and authorized advisors might solicit, think about and negotiate different acquisition proposals from third events.
The acquisition, which is topic to approval by Caesars shareholders, isn’t topic to a financing situation. The transaction can be financed by means of a mixture of fairness contributed by Fertitta Leisure, assumed Caesars’ debt, and new dedicated debt financing organized by a bunch consisting of 10 banks.
PJT Companions is serving as unique monetary advisor, Latham & Watkins LLP is serving as authorized counsel, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as antitrust counsel to Caesars Leisure. Freshfields is serving as counsel to the Carano household, which owns roughly 5% of Caesars inventory. Morgan Stanley and Goldman Sachs are serving as monetary advisors and White & Case LLP is serving as authorized counsel to Fertitta Leisure.
