Fitch takes a "circumspect view" of Caesars' plans to remodel Bill's Gamblin' Hall

29 October 2012

LAS VEGAS -- Fitch Ratings Service weighed in on Caesars Entertainment Inc.'s plans to spend $146 million to remodel Bill's Gamblin' Hall and Saloon, saying Friday it had a "circumspect view" of the project.

Caesars, which owns 10 casinos on or near the Strip, wants to remodel Bill's, located at the corner of the Strip and Flamingo Boulevard, which includes adding a pool and nightclub - operated by Drai Management Group - on the roof of the casino.

"The Drai's financing is consistent with Caesars' more recent transactions of carving out assets or selling assets from Caesars Entertainment to fund (capital expenditures) aimed at revitalizing the company's Las Vegas portfolio of assets," Fitch gaming analyst Michael Paladino said in a report to investors.

Caesars plans to remodel the 198 hotel rooms and the 17,200-square-foot casino at Bill's. The property, formerly known as the Barbary Coast, was opened by Michael Gaughan in 1979.

Nearby, Caesars is spending $550 million on The Linq, a 300,000-square-foot retail, dining and entertainment district that includes a 550-foot-tall observation wheel as its centerpiece.

That project includes redevelopment of the Imperial Palace as The Quad Resort and Casino.

Paladino said Fitch was concerned with the ability of the Bill's project "to ramp up to the extent that it will be able support [the] debt service on a stand-alone basis as well as the weak credit profile of Caesars Entertainment."

Caesars Entertainment has almost $20 billion in long-term debt, the highest figure of any gaming company.

"Given the novel nature of the project and significant overhaul of target customer demographic, Fitch believes any forecast is subject to considerable variance," Paladino said.

In September, Fitch released a negative report on Caesars that expressed concern over the company's debt obligations, and even hinted that the company might have to undertake some type of bankruptcy restructuring efforts.

Caesars officials have vehemently denied that company would have to take that step. The company has extended its major debt maturities into 2015.

Caesars Entertainment is expected to close the sale of its Harrah's St. Louis for $610 million in November to Penn national Gaming. A bulk of the proceeds will likely be spent on project capital expenditures and maintenance on the company Strip resorts.

Fitch assigned a "B-/RR2" rating to the $185 million in proposed term loans being issued by Caesars.

Earlier this month, Caesars Chairman Gary Loveman told analysts and investors attending the Global Gaming Expo that the company planned to undertake expansion and renovation projects in several of the company's markets, including the Strip.

Related Links
The Cromwell Details
Fitch Ratings Gaming Vendor Information


Copyright GamingWire. All rights reserved.
Featured Vendors
Sunkist Graphics, Inc.
Shenzhen ZhengYuanTai Technology Co., Ltd.
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
Shenzhen ZhengYuanTai Technology Co., Ltd.
14 years Experienced Gaming Display Manufacture: Open Frame monitor, Curved Monitor, Halo Monitor
Imagine This
Rymax Marketing Services, Inc.
Imagine This
Imagine This #1 Source for Player Gifts. Over $50 million in stock ready to ship! Let us serve you!
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
Casino Network
Oklahoma Indian Gaming Association (OIGA) Conference
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: August 12-14, 2024 Oklahoma City
House Tech Ads
Regulatory Management Counselors, PC
House Tech Ads
Drive quality casino-gambling traffic to your brand from over 70 countries from our premium assets!
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
Kallop
OCR - Online Casino Reports
Kallop
Reward every play like a VIP with exclusive luxury brands at affordable prices.
OCR - Online Casino Reports
Delivers highly targeted casino traffic from over 70 countries! Get your casino listed today at OCR!
Casino Schedule Ease
Top One Tech Limited
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
Top One Tech Limited
GLOBAL TOUCH SOLUTION PARTNER OF CHOICE,10+ years OEM manufacturing,100+ thousand units application
Casino City Press
Texas Slots & Gaming
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Texas Slots & Gaming
Wholesale gaming reimagined. Texas Slots & Gaming is your sustainable gaming partner.
GamblersPick
Talisman Group Creators of EZ Baccarat
GamblersPick
Share & Read other players' reviews! A top player community-driven portal for online casinos.
Talisman Group Creators of EZ Baccarat
With over 800 tables in 150+ casinos, EZ Baccarat is the number one brand in baccarat.
Slot Machines Unlimited
TribalHub
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
TribalHub
25th Annual TribalNet Conference Sept 16-19, 2024 Westgate Las Vegas
Dable Advisory & Consulting Services
AmericanChecked
Dable Advisory & Consulting Services
Advisory & consulting services services for Indigenous entrepreneurs, businesses & organizations
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions


Your Guide to 14,906 Gaming Industry Suppliers