Eldorado set to get $772M bump from exercising greenshoe option
Eldorado expects to make roughly $772 million from a public offering of common stock, according to a Thursday news release.
The announcement comes after underwriters of the Reno-based casino operator’s recent public offering exercised a greenshoe option, setting them up to acquire additional shares of common stock at the public offering price and bumping the net proceeds for Eldorado. The shares are expected to be delivered Friday.
Eldorado, which is expected to close a $17.3 billion acquisition of Caesars Entertainment Corp. next month, intends to use the net proceeds from the offering for “general corporate purposes,” according to the release.
On Tuesday, Eldorado announced the pricing of an underwritten public offering of 18 million shares of common stock at a public offering price of $39 per share and granted the underwriters the option to purchase up to 2.7 million additional shares at the public offering price. Without the greenshoe option, Eldorado would have made an estimated $672 million.
J.P. Morgan, Credit Suisse, Deutsche Bank Securities and BofA Securities are acting as joint lead book-running managers for the offering. Goldman Sachs & Co. LLC, Macquarie Capital and SunTrust Robinson Humphrey are also acting as joint book-running managers. Citizens Capital Markets, BTIG, Fifth Third Securities, KeyBanc Capital Markets, Stifel and Union Gaming are acting as the co-managers.
Contact Bailey Schulz at bschulz@reviewjournal.com or 702-383-0233. Follow @bailey_schulz on Twitter.