Caesars, OneDigital update loan terms, break for trading; Meredith, Ingersoll on deck

By Sara Rosenberg

New York, June 17 – Caesars Resort Collection LLC increased the size of its first-lien term loan and revised the original issue discount before freeing up for trading on Friday.

Also, OneDigital finalized the original issue discount on its incremental first-lien term loan at the wide end of guidance and then the debt made its way into the secondary market during the session.

And, in more happenings, Meredith Corp. and Ingersoll Rand Inc. joined the near-term loan calendar.

Caesars tweaked

Caesars Resort raised its five-year covenant-lite first-lien term loan (B1/B+) to $1.8 billion from $1.47 billion and changed the original issue discount to 97 from 96, according to a market source.

As before, the term loan is priced at Libor plus 450 basis points with a 0% Libor floor and has 101 soft call protection for six months.

Recommitments were due at 10:30 a.m. ET on Friday, the source added.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Macquarie Capital (USA) Inc., BofA Securities, Inc., Deutsche Bank Securities Inc., Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc., U.S. Bank and Citizens Bank are leading the deal.

Caesars frees up

With final terms place, Caesars term loan was able to allocate and break for trading on Friday, and the debt was quoted at 97½ bid, 98½ offered, another source added.

The new term loan will be used to help fund the acquisition of Caesars Entertainment Corp. by Eldorado Resorts Inc. for $8.40 per share in cash and 0.0899 of a share of Eldorado common stock for each Caesars share. Funds from the loan upsizing are being used to reduce Caesars’ notes offering to $1 billion from $1.05 billion, to pay down $154 million of revolver borrowings and for general corporate purposes.

Closing is expected in mid-2020.

Las Vegas-based Caesars and Reno, Nev.-based Eldorado are gaming companies. At closing, the combined company will retain the Caesars name and be based in Reno.

OneDigital updated, trades

OneDigital set the original issue discount on its non-fungible $75 million incremental first-lien term loan (B) at 97, the wide end of the 97 to 98 talk, a market source remarked.

Pricing on the term loan remained at Libor plus 475 bps with a 1% Libor floor, and the debt still has 101 soft call protection for one year.

On Friday, the incremental term loan began trading and levels were quoted at 97¼ bid, 97¾ offered, another source added.

Golub Capital is leading the deal that will be used to finance upcoming acquisitions.

The company has also privately placed a non-fungible $25 million first-lien delayed-draw term loan with Golub that will be fungible with the new term loan as it is drawn.

OneDigital, a New Mountain Capital portfolio company, is an Atlanta-based employee benefits insurance broker.

Meredith readies deal

Meredith emerged with plans to hold a loan lender call at 3 p.m. ET on Monday, according to a market source.

RBC Capital Markets is leading the deal.

Currently, the company has a roughly $1.1 billion term loan B priced at Libor plus 250 basis points with a 0% Libor floor and $1.3 billion of senior unsecured notes priced at 6.875%.

Meredith is a Des Moines, Iowa-based media and marketing company.

Ingersoll joins calendar

Ingersoll Rand set a lender call for 11 a.m. ET on Monday to launch a new loan deal, a market source said.

Citigroup Global Markets Inc. is the left lead on the deal.

Ingersoll Rand is a Davidson, N.C.-based provider of mission-critical flow creation technologies and associated aftermarket parts, consumables and services.

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