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Eldorado to Merge with Caesars

Total deal price tag equates to $17.3 billion

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Eldorado Resorts, Inc. and Caesars Entertainment Corporation announced that they have entered into a definitive merger agreement to create the reportedly largest U.S. gaming company. The combined company will have approximately 60 domestic casino-resorts and gaming facilities across 16 states.

Eldorado will acquire all of the outstanding shares of Caesars for a total value of $12.75 per share, consisting of $8.40 per share in cash consideration and 0.0899 shares of Eldorado common stock for each Caesars share of common stock based on Eldorado's 30-calendar day volume weighted average price per share as of May 23, 2019, reflecting total consideration of approximately $17.3 billion, comprised of $7.2 billion in cash, approximately 77 million Eldorado common shares and the assumption of Caesars outstanding net debt (excluding face value of the existing convertible note). Eldorado and Caesars shareholders will hold approximately 51% and 49% of the combined company's outstanding shares, respectively.

Upon completion of the transaction the combined company will retain the Caesars name.

Photo: Courtesy of Caesars Entertainment Corporation