Eldorado Resorts is set to sell some Las Vegas real estate as well as issuing shares in order to strengthen its finances ahead of a $17 billion merger with Caesars.
Regulatory delays have delayed the merger date.
Eldorado, Caesars Merger Dates
Meetings were cancelled due to the COVID-19 pandemic.
The Indiana Gaming Commission has set July 10 as the as that date that they shall consider the merger proposal.
The Indiana Gaming Commission, the commissions of New Jersey and Nevada have to approve the proposal before finalisation.
Also, the Federal Trade Commission (FTC) has to approve the merger proposal before the deal can be finalised.
Selling of Shares by Eldorado
The company is offering 20.7 million shares of its stock. Additionally, the proceeds will go to general corporate purposes.
The Merger
The acquirement of Caesars which is expected to be finalized soon will make Eldorado the largest gambling operator in the US. The company has been trying to find new owners of properties. Also, the company feared regulators were opposed to its augmented market share.
Also, the time for the company to win proposals extended into the COVID-19 pandemic. Additionally, the company as well as other gaming companies were affected by the pandemic. Eldorado and Caesars have got more flexibility from banks when it comes to how much the companies can borrow comparative to their earnings. The two companies have amended terms of their existing credit lines.
Eldorado Revenue
Eldorado’s revenues dropped by 21% year over year due to the corona virus pandemic effect. However, the company’s earnings before tax, depreciation and amortization increased by 16% as compared to the same period last year. The revenue numbers are set to improve as the company starts reopening some of their properties.
Conclusion
The two companies are set to grow due to the merger. The bank group that is dealing with the two companies’ merger agreed to increase the credit lines of the companies. If everything goes according to plan, the deal will be finalised in mid-2020. The merger was announced last June.
FAQs
[accordiongroup id=”86″ markup=”default”][accordion group=”86″ title=”What are the properties that are owned by Eldorado Resorts?” active=”true”]
- Grand Victoria Casino Elgin — Elgin, Illinois.
- Isle Casino Hotel Bettendorf — Bettendorf, Iowa.
- Eldorado Gaming Scioto Downs — Columbus, Ohio.
- Circus Circus Reno — Reno, Nevada.
- Eldorado Reno — Reno, Nevada.
- Eldorado Shreveport — Shreveport, Louisiana.
[/accordion][accordion group=”86″ title=”Is it advisable to buy Eldorado stock?” active=””]Eldorado stocks are among the best that you can find in the market.[/accordion][accordion group=”86″ title=”Who acquired Caesars Entertainment?” active=””]Eldorado Resorts acquired Caesars Entertainment for $17 Billion. The company will now be the owner of Caesars Palace as other properties that were owned by Caesars Entertainment.[/accordion][accordion group=”86″ title=”What will happen to Caesars stock after the merger?” active=””]Eldorado will pay $8.40 per share in cash and 0.0899 shares of Eldorado stock for each Caesars share, or $12.75 per share. This is under the agreement by the two companies.[/accordion][/accordiongroup]