CERPLC 11 10/01/21, CGPHLC 9⅜ 05/01/22

Publicly traded companies mentioned herein: Caesars Entertainment Corporation (CZR), Caesars Growth Properties Holdings LLC (private co w/ public debt)

Highlights

The presenter is long CERP’s and CGP’s 2nd lien corporate debt at 109 and 108.30, respectively. He likes the risk/ reward following the approval of Caesars’ bankruptcy reorganization plan because these entities are not involved in the bankruptcy and will continue to pay interest on the debt. It is “just a matter of time” before the gaming authorities sign-off on the plan, and “billions of dollars worth of new securities will come out as a result of the completion of the process”. The bonds he is long are callable - CERP’s on 3/9/2017 and CGP’s on 5/1/2017 - and if the story unfolds along the timeline the presenter expects the minimum IRR an investor should realize is ~2.9%. The longer the process takes, the higher the potential return (i.e., if the call date ends up being 8/1/2017, the IRR increases to 6% for the CGP notes and 9% on CERP’s).