Caesars Entertainment (CZR) shares jumped Wednesday after the hotel and casino operator announced a big new stock buyback, along with a bond offering to pay off older debt.
The company wrote in a regulatory filing that the board had approved a $500 million share repurchase program after the expiration of the previous $150 million one, which was begun in 2018. Caesars noted that after buying back 3.87 million shares in its 2024 fiscal third quarter, no more of that allocated money remained.
Stock Still Down for the Year
Caesars added that the new buyback plan “does not constitute a formal or binding commitment to make any share repurchases and the timing, amount and method of any share repurchases made pursuant to the New Share Repurchase Program will be determined at a future date depending on market conditions and other factors.”
Caesars also said it plans to sell $1 billion worth of senior notes due in 2032. The company explained that the money raised would be used to “redeem or repurchase ... a portion of the Company’s existing 8.125% Senior Notes due 2027 and to pay fees and expenses in connection with the offering.”
Caesars shares were up 4% about half an hour before the closing bell, after rising as much as 7.8% to its highest point since early April earlier in the session. Despite the gain Wednesday, the stock is still down about 10% in 2024.
