Harrah’s Entertainment, which is owned by private equity firms TPG Capital and Apollo Management, will raise about $500 million in an initial public offering, Reuters reported. The company plans to sell 31.25 million shares, or 9.3% of the company, at $15 to $17 each. The company will also change its name to Caesars Entertainment.
(Reuters) – Harrah’s Entertainment Inc, the world’s largest casino operator by revenue, finalized terms for an initial public offering that would raise about $500 million.
Harrah’s said on Friday in a regulatory filing with the U.S. Securities and Exchange Commission that it hopes to sell 31.25 million shares, or about 9.3 percent of the company, for $15 to $17 each. It also said it would change its name to Caesars Entertainment Corp and trade on the Nasdaq under the symbol “CZR.”
Separate from the IPO, Paulson & Co, a hedge fund manger that injected cash into the casino operator in June in exchange for equity, is planning to sell its 30.24 million-share stake in Harrah’s.
Harrah’s operates about 50 casinos, primarily in the United States and Britain. Most of the casinos operate under the Caesars, Harrah’s and Horseshoe brands. It also owns and operates the World Series of Poker tournament and brand.
Harrah’s, controlled by private equity firms Apollo APOLO.UL and TPG Capital TPG.UL, filed for an IPO in August.
Caesars has said previously it plans to use proceeds from the offering to fund retail, dining and entertainment developments between the Imperial Palace and the Flamingo in Las Vegas, among other projects.
After the IPO and Paulson’s share sale, the company expects to have total debt of about $18.95 billion compared and equity of $2.3 billion.
By Clare Baldwin and Richard Lee
(Editing by Steve Orlofsky)