Caesars launches $1.75 billion term loan B at SOFR plus 375 bps

By Sara Rosenberg

New York, Jan. 23 – Caesars Entertainment Inc. launched on Monday its $1.75 billion seven-year term loan B with price talk of SOFR+10 basis points CSA plus 375 bps with a 0.5% floor and an original issue discount of 97.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

JPMorgan Chase Bank is the left lead arranger on the deal.

Commitments are due at noon ET on Thursday.

Proceeds will be used with $2 billion of senior secured notes, upsized from $1.25 billion, to repay Caesars Resort Collection LLC’s existing term B due 2024 and to pay related fees and expenses.

As a result of the bond upsizing, the company is no longer drawing $415 million under its revolving credit facility and using $30 million of cash on hand for the transaction. Instead, the company is adding cash to its balance sheet for general corporate purposes, including optional debt repayment.

Caesars is a Reno, Nev.-based gaming and entertainment company.

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