Caesars Entertainment Corp. is selling a minority interest in its largest unit, a step that removes guarantees by the casino company on much of its $23 billion of debt and sets the stage for a wider restructuring.
The Las Vegas-based company is selling a 5 percent stake in Caesars Entertainment Operating Co. to undisclosed investors, according to a statement yesterday. Caesars has agreed to pursue a stock exchange listing for the unit.
The sale means some bond investors will no longer hold a claim to the parent company's assets and will have less bargaining power in debt restructuring negotiations. The company was purchased in 2008 in a $30.7 billion leveraged buyout led by Apollo Global Management LLC and TPG Capital.
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