Caesars Entertainment wraps tender offer for 6¼% notes due 2025

By Mary-Katherine Stinson

Lexington, Ky., Feb. 1 – Caesars Entertainment, Inc. announced the results of its Jan. 18 cash tender offer for any and all of its $3,399,000,000 outstanding 6¼% senior secured notes due 2025 (Cusip: 28470RAH5, U2829LAC9), according to an 8-K filing with the Securities and Exchange Commission.

As of the extended expiration time, $2,980,966,000, or 87.7%, of the notes had been validly tendered and accepted for purchase, and an additional $7,449,000, or 0.22%, were tendered under guaranteed delivery procedures.

The offer expired at 5 p.m. ET on Jan. 31. It was originally set to expire at 5 p.m. ET on Jan. 30. The company also extended the guaranteed delivery deadline to 5 p.m. ET on Feb. 2, according to a previous notice.

As of the original deadline, $2,981,066,000, or about 87.7%, of the notes had been tendered, with an additional $6,302,000, or about 0.19%, tendered under guaranteed delivery procedures.

As previously reported, the purchase price of $1,003.79 per $1,000 principal amount was calculated based on the 3% U.S. Treasury due June 30, 2024 and a fixed spread of 0 basis points. Pricing was set at 2 p.m. ET on Jan. 30.

The company will also pay accrued interest to but excluding the settlement date, which is expected to be on Feb. 6.

The tender offer is not conditioned on any minimum amount being tendered but is conditioned on new debt financing.

If 90% or more of the outstanding notes had been tendered and accepted for purchase, the company intended to redeem any notes that remain following settlement of the tender offer. The redemption price would have been equal to the tender offer consideration, plus accrued interest.

On the other hand, if less than 90% of the outstanding notes were tendered and accepted for purchase, the company intends to redeem the remaining notes at par on July 1.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-4087) is the lead dealer manager, and Deutsche Bank Securities, Inc. is the co-dealer manager.

The tender and information agent is D.F. King & Co., Inc. (http://www.dfking.com/Caesars; Caesars@dfking.com; 866 811-1442 and 212 269-5550 for banks and brokers).

Caesars is a casino-entertainment company based in Reno, Nev.

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