Caesars Entertainment (CZR) saw its stocks rise on Wednesday following the announcement of a large-scale stock buyback and a bond offering to offset lingering debts. The hotel and casino operator revealed in a regulatory filing that its board had approved a $500 million stock repurchase program, taking over from the previous $150 million one initiated in 2018.
In the fiscal third quarter of 2024, Caesars successfully bought back 3.87 million shares, depleting the originally allocated funds. The company further clarified that its newly introduced buyback plan does not in any way signify a binding or formal commitment for any share repurchases but will depend on future market conditions and other determinants.
The company is also planning to offer $1 billion senior notes due in 2032. The proceeds from this sale will be utilized to settle a portion of the company’s existing 8.125% Senior Notes falling due in 2027 and also cover fees and expenses related to the offering.
Half an hour before closing bell, the company's shares rose by 4% and had surged to an impressive 7.8%-its highest point since early April. Despite this significant achievement, the stock is still down by around 10% in 2024.