Caesars Entertainment to buy back shares, offer senior notes

Shares of Caesars Entertainment (NASDAQ:CZR) were outperforming casino stocks with a gain of 5% after the company said it will buy back $500M shares of common stock following the completion of its previous repurchase agreement. The repurchase will be conducted at a later date depending on market conditions.

Concurrent with the repurchase announcement, the company will also offer $1B in senior notes due 2032 in a private placement to institutional buyers, using the proceeds to tender, redeem or repurchase a portion of its existing 2027 senior notes.

Finally, the company said that as part of its recently announced sale of its World Series of Poker intellectual property to NSUS Group, it expects to receive the first $250M of the transaction in the fourth quarter of this year. Caesars (CZR) expects that a substantial majority of the net proceeds of the sale will be used to repay secure indebtedness or to reinvest in the business.

Casino stocks are getting a lift Wednesday thanks to a federal judge’s decision to dismiss a consumer class action regarding the use of algorithms and artificial intelligence in determining room rates at its New Jersey resorts.

The decision, dismissed with prejudice, is underpinning shares of Caesars Entertainment (CZR), as well as Wynn Resorts (WYNN), and MGM Resorts International (MGM).