With debt-laden gaming giant Caesars widely expected to undergo restructuring, current bondholders may see their future negotiating power being seriously weakened, Reuters reported on Friday. The corporate parent's guarantee behind bonds issued by the opco, Caesars Entertainment Operating Company, is expected to be removed under a credit agreement amendment. Analysts say this would significantly weaken the position of current bondholders when CEOC, which is operating under nearly $18 billion in debt, heads to restructuring. Private equity firms Apollo and TPG acquired Caesars in a 2008 leveraged buyout, leaving the company with a large amount debt — and more is on the way. CEOC plans to raise an additional $1.75 billion in a new first-lien term loan, which will repay more than $1 billion of 2015 bond maturities if investors tender the debt, as well as some existing bank loans.
