Caesars cuts spread on $1.24 billion term loan B to Libor plus 250 bps

By Sara Rosenberg

New York, April 3 – Caesars Entertainment Operating Co. LLC reduced pricing on its $1,235,000,000 seven-year covenant-light term loan B to Libor plus 250 basis points from talk of Libor plus 275 bps to 300 bps, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 90 and the full margin thereafter.

The company’s $1,435,000,000 in senior secured credit facilities (Ba3/BB) also include a $200 million five-year revolver.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and UBS Investment Bank are the leads on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Monday, the source added.

Allocations are expected on Tuesday.

Proceeds will be used for exit financing, including to repay existing debt and to pay related fees and expenses.

Total opco debt is 2.8 times and net opco debt is 2.1 times. Total lease adjusted debt is 5.8 times and net lease adjusted debt is 5.5 times.

Caesars is a Las Vegas-based casino-entertainment company that filed for bankruptcy on Jan. 15, 2015 in the U.S. Bankruptcy Court for the Northern District of Illinois. The Chapter 11 case number is 15-01145.

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