Caesars ups term loan B to $2.5 billion, flexes to SOFR plus 325 bps

By Sara Rosenberg

New York, Jan. 24 – Caesars Entertainment Inc. upsized its seven-year term loan B to $2.5 billion from $1.75 billion and reduced pricing to SOFR plus 325 basis points from SOFR plus 375 bps, according to a market source.

In addition, a step-down was added to the term loan to SOFR plus 300 bps when total leverage is less than or equal to 3.75x, and the original issue discount talk was changed to 98.5 to 99 from 97.5, the source said.

As before, the term loan has 10 bps CSA, a 0.5% floor and 101 soft call protection for six months.

JPMorgan Chase Bank is the left lead arranger on the deal.

Recommitments are due at noon ET on Wednesday, the source added.

Proceeds will be used with $2 billion of senior secured notes, upsized recently from $1.25 billion, to repay Caesars Resort Collection LLC’s existing term B due 2024 and to pay related fees and expenses.

As a result of the recent bond upsizing, the company canceled plans to draw $415 million under its revolving credit facility and use $30 million of cash on hand for the transaction. Instead, the company is adding cash to its balance sheet for general corporate purposes, including optional debt repayment.

Caesars is a Reno, Nev.-based gaming and entertainment company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.