NEW YORK (TheStreet) -- Shares of Caesars Entertainment (CZR) are up 3.56% to $13.80 on heavy trading volume after it was reported that the casino entertainment company reached a deal with the trustee of first-lien bonds that would facilitate negotiations with holders of those notes because it provides incentive to delay a potential notice of default, Bloomberg reports.
The company announced a waiver agreement with UMB Financial Corp. (UMBF), which was named the trustee of almost $5 billion of first-lien bonds on July 30, that’s aimed at keeping those noteholders engaged in discussions, according to a regulatory filing today.
The agreement may discourage bondholders from alleging a default until September 19 because any notice filed on that date or later would only give the Las Vegas-based company 10 days to comply with its credit pact, according to the filing.
Ordinarily, Caesars would have 60 days to address a violation, so the deal would give it less time before creditors can expedite claims, Bloomberg said.
TheStreet Ratings team rates CAESARS ENTERTAINMENT CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CAESARS ENTERTAINMENT CORP (CZR) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."