Caesars draws $1.52 billion under three revolvers amid uncertainty

By Wendy Van Sickle

Columbus, Ohio, March 16 – Caesars Entertainment Corp. said it drew down the remaining $1.52 billion of availability under three revolving credit facilities on Monday as a precaution to increase its cash position and preserve financial flexibility as a result of uncertainty in global markets, according to an 8-K filing with the Securities and Exchange Commission.

These borrowings included $975.5 million under a December 2017 revolver with CEOC LLC and Caesars Resort Collection, LLC as borrowers, $161.4 million under a 2018 revolver with CEOC as borrower and $15 million under a July 2017 revolver with CBAC Borrower, LLC as borrower.

Borrowings will bear interest at Libor plus an initial rate of 200 basis points for the December 2017 revolver, 187.5 bps for the 2018 revolver and 400 bps for the July 2017 revolver.

Each of the revolvers matures in 2022.

Borrowings may be used for working capital, general corporate or other permitted purposes.

At Dec. 31, there were no borrowings and about $63.1 million committed to outstanding letters of credit under the revolvers.

Caesars is a Las Vegas-based full-service gaming and entertainment company.

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