Caesars (CZR) : 2-year performance

Caesars has been shuffling its balance sheet for the better part of a decade after a $31 billion buyout in 2006. The public shares have performed well but Caesars continues to scramble for cash to pay off debt holders.

** weekly chart **

Caesars Entertainment Corp. fell 7.4 percent to its lowest price since December after the casino operator said it will offer 7 million common shares, worth about $147.6 million at yesterday’s prices.

The shares declined to $19.52 at the close in New York, the lowest since Dec. 10. The stock has tumbled 25 percent this month.

** daily chart **

The offering underscores the challenges facing Caesars, which has been restructuring more than $23 billion in debt and doesn’t generate enough cash to cover its expenses. The Las Vegas-based company, controlled by Apollo Global Management LLC (APO) and TPG Capital, this week said it will close a casino in Tunica, Mississippi, because of declining revenue. On the Las Vegas Strip, where the company has been investing in its properties, gambling revenue fell 20 percent last month.

Caesars, the largest owner of casinos in the U.S., granted its banker the option to sell another 1.05 million shares, according to a statement yesterday. Apollo and TPG have agreed not to sell any of their holdings for about 60 days after the offering. Citigroup Inc. (C) is the sole underwriter.

The company has struggled to repair its balance sheet after a $30.7 billion leveraged buyout in 2008. Caesars has sold stock to the public, divested assets, bought back debt and restructured loans.

The sale of 7 million shares would increase the number outstanding by 5.1 percent to 144.2 million, according to company filings. While the share offering dilutes equity investors, some bonds rose.