CBAC Borrower gets $300 million term loans, $15 million revolver

By Wendy Van Sickle

Columbus, Ohio, July 7 – CBAC Borrower, LLC borrowed $300 million of seven-year term loans (B3/B) on Friday under a credit agreement that also provides for a five-year $15 million revolving credit facility (B3/B), according to an 8-K filed with the Securities and Exchange Commission.

The debt was led by Wells Fargo Securities, LLC, Macquarie Capital (USA) Inc. and Nomura Securities International, Inc. as joint lead arrangers and joint bookrunners.

Wells Fargo Gaming Capital, LLC, is the administrative agent.

The term loan requires scheduled quarterly payments equal to 0.25% of the original total principal amount, with the balance due at maturity.

Interest on the term and revolving loans is Libor plus a margin of either: 375 basis points if the borrower’s credit ratings from Moody’s and S&P are both B2 with a stable outlook and B with a stable outlook or better; or 400 bps otherwise. Revolving loans have a 25-bps step-down from each pricing level based on senior secured leverage ratio. In each case, there is a 0% Libor floor.

The loan was sold at an original issue discount of 99.

During syndication, pricing on the term loan was increased from Libor plus 350 bps, the step-down was added, the call protection was extended from six months and MFN sunset was removed.

The revolver has a commitment fee of 37.5 bps to 50 bps, based on ratings and leverage ratio.

The credit agreement allows the company to request additional revolving or term loans of $40 million or more in certain cases.

The revolver was not drawn at closing, and there were no outstanding letters of credit. Future revolving loans and letters of credit may be used for general corporate purposes.

The borrower is the owner of the Horseshoe Baltimore casino and is a subsidiary of a joint venture among Caesars Growth Partners, LLC and Las Vegas-based casino-entertainment company Caesars Entertainment Corp.

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