Caesars tightens $265 million incremental term loan price to par

By Sara Rosenberg

New York, Oct. 20 – Caesars Entertainment Opco (CEOC LLC) changed the issue price on its fungible $265 million incremental covenant-light first-lien term loan (Ba3/BB) due Oct. 6, 2024 to par from talk in the range of 99.5 to 99.75, according to a market source.

Pricing on the incremental loan is Libor plus 250 basis points with a 0% Libor floor, in line with existing first-lien term loan pricing.

The incremental loan includes a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

Call protection on the incremental loan is a 101 soft call until April 6, 2018, which matches the call protection on the existing term loan.

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

Recommitments were scheduled to be due at noon ET on Friday, the source added.

Proceeds will be used to refinance debt at Harrah’s Philadelphia, which will become part of the CEOC credit group.

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

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