All Hail Caesar’s! CZR is Back

Caesars ($CZR) is back, bayyybeeee!   I’m not that old, but I’m old enough to remember when CZR traded as a standalone company.   They merged with Harrah’s (HET) and then the combined conglomerate was bought out in an LBO near the peak of the bubble.   Now they’re back, with CZR being re-ipo’d.    The full filing is here, and shares will probably be trading by the time you read this.   I put together this little spreadsheet of CZR’s revenue by region, which I found interesting:

Data was compiled from the S-1 filing

Las Vegas is their driver, of course, but note the huge non-casino revenues in Vegas, which you don’t really see in any other region.  Then there’s the low margin Atlantic City business.   Despite the fact that A.C. actually does more casino revenue for CZR than even Las Vegas does, the Income from Operations contribution from A.C is right in line with Lou/Miss, Ill/Ind, and below Iow/Miz, due to the higher margins of the midwest business.

The S-1 filing is hundreds of pages, but here’s another tidbit that you might want to pay attention to, emphasis mine:

After this offering, we will have 125,025,500 shares of our common stock outstanding (or 125,297,197 shares if the underwriters’ option to purchase additional shares in this offering is exercised in full), all of which will be voting common stock, excluding shares reserved at February 1, 2012 for issuance upon exercise of options that have been granted under our stock option plans (2,015,745 of which were exercisable at such date). Of these shares, the 1,811,313 shares of our common stock to be sold in this offering (or 2,083,010 shares if the underwriters’ option to purchase additional shares in this offering is exercised in full), 12,372,835 shares of our common stock held by the Paulson Investors and 22,339,143 shares of our common stock held by the Participating Co-Investors will be freely tradable without restriction or further registration under the Securities Act, except for any shares which may be acquired by any of our “affiliates” as that term is defined in Rule 144 under the Securities Act, which will be subject to the resale limitations of Rule 144 and to existing lockup arrangements. The remaining 88,502,209 shares of our common stock outstanding will be restricted securities, as that term is defined in Rule 144, and may in the future be sold without restriction under the Securities Act to the extent permitted by Rule 144 or any applicable exemption under the Securities Act.””

 

It sure looks like they’re just trying to create a publicly trading security so that insiders can be free to liquidate their stakes…  The IPO itself is only raising a teeny bit of money for the company – on the order of $20 MM even with the over-allotment option.

-KD

disclosure:  no position in $CZR, $LVS, $MGM, $WYNN

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