Caesars shares are going insane, gaining as much as 19% in after hours trade on Wednesday.
After the close on Wednesday, a report from Bloomberg's Laura Keller, citing two people with knowledge of the plans, said that Caesars Entertainment has presented a plan to restructure the debt of its largest unit into a real estate investment trust.
A real estate investment trust, typically called a REIT, is a corporate structure that only invests only in real estate and trades on a public exchange, like a stock, generating income through rent collection and paying out at least 90% of its taxable income in the form of dividends to shareholders.
The plan would turn Caesars Entertainment Operating Co. into a property company that owns the casinos and a company that would manage them, according to Keller's report.
Keller's report says that Caesars is planning to announce the proposal today after Silver Point Capital, a lender of the company's largest unit, exited restructuring talks.
More to come ...
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