Caesars Entertainment announced the closing of a $3bn Senior Credit Facilities arrangement which consists of a $750m senior secured loan term and a $2.25bn senior secured credit facility. This deal will result in an increase and extension to Caesar’s existing revolving credit facility.
With the finalization of the Senior Credit Facilities deal, Caesars retired Caesars Resort Collection’s (CRC) credit facility and used the proceeds of the Term A Loan to prepay $750m of CRC's existing term B loans (which are due December 2024).
The interest rate under the Senior Credit Facilities is the expected term rate based on the secured overnight financing rate (Term SOFR). In addition, there is an adjustment of ten basis points plus an applicable margin of 225 basis points which is subject to three 25 basis point step-downs based on the achievement of certain net total leverage ratios.
Caesars Chief Financial Officer Bret Yunker commented: “We are excited to complete this new financing and greatly appreciate the support of our 16 domestic and international banking partners. This refinancing transaction will reduce interest expense while also extending debt maturities."
Latham & Watkins, LLP served as legal counsel for Caesars and JPMorgan Chase Bank. It will continue to serve as an administrative agent during this refinancing period.
Caesars is a leading casino-entertainment company in the US and one of the world's most diversified casino-entertainment providers. Since its beginning in Reno, Nevada, in 1937, Caesars has grown through development of new resorts, expansions and acquisitions. Caesars resorts operate primarily under the Caesars, Harrah's, Horseshoe, and Eldorado brand names.
