Caesars sells shares to Credit Suisse

Caesars Entertainment has just sold over 10 million of its ordinary shares to Swiss banking giant Credit Suisse for $200 million. The sale is part of the gambling companies efforts to raise $4.4 billion to pay back old debts that are due for payment at the end of this year.

As part of the agreement Credit Suisse has 30 days on an option to buy more than 1.5 million more shares from Caesars, which it is understood they have already purchased some 340,000 of those ordinary shares at $19.4 a share, generating an additional $6.6 million.

It is also understood that the casino giant has recently secured a new loan of $3 billion and revolving credit of $269.5 million which it will use to drive down that $4.4 billion debt hanging over the company for repayment due by years end.

The casino operator which has total debts of $23.5 billion has for some time been rumoured to be considering bankruptcy protection, but seems intent on fighting that option.