Caesars $300 million convertible floater yields Libor flat, up 70%

New York, March 30 - Caesars Entertainment Inc. priced $300 million of floating-rate contingent convertible senior notes due 2024 to yield three-month Libor flat with a 70% initial conversion premium.

The deal came at the cheap end of talk which had put the yield at Libor minus 50 basis points to flat with a 70% to 75% initial conversion premium.

Deutsche Bank Securities (stabilization agent) and JPMorgan were joint bookrunners of the Rule 144A deal, which priced after the close Tuesday.

The conversion price is $22.29 or a ratio of 44.8632. On conversion, holders will receive the principal amount in cash and the remainder in stock.

The senior unsecured notes will be non-callable for five years, then at par. There are puts in years five, 10 and 15 at par.

There is a 120% contingent conversion trigger.

Holders will have full dividend protection.

A $75 million greenshoe is available.

The Las Vegas casino operator said proceeds would be used to pay down existing debt.

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