Caesars Entertainment Corporation (NASDAQ: CZR) has just filed to sell up to $500 million shares of common stock. If you will recall, this was a tiny initial public offering and this will exponentially increase its share float.
As far as the use of funds, “We will describe the use of proceeds with respect to a particular offering in the applicable prospectus supplement, which may include the use for general corporate purposes, including development projects and maintenance capital expenditures, and for the retirement of indebtedness.”
The filing also noted, “The securities may be sold directly to you, through agents, through underwriters and dealers or through a combination of any of these methods of sale. If agents, underwriters or dealers are used to sell the securities, we will name them and describe their compensation in a prospectus supplement.”
Caesars is now down about 6% at $12.06 on over 850,000 shares. The stock had been up at almost $13.50 before the news was out of the share sale.
JON C. OGG