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Caesars draws on revolver, gets debt commitment for William Hill buy
By Sara Rosenberg
New York, Sept. 30 – Caesars Entertainment Inc. drew down $900 million under its revolving credit facility to provide liquidity to potentially fund a portion of its acquisition of William Hill plc, and has also entered into commitment letters for credit facilities to be provided in connection with the acquisition, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.
Deutsche Bank AG, London Branch and JPMorgan Chase Bank provided the credit facilities commitment.
The commitment includes an interim facilities agreement which may be entered into by an affiliate of Caesars and certain lenders in connection with the acquisition at a later date, following certain regulatory approvals being obtained in relation to the credit facilities.
The acquisition may be fully funded through a combination of Caesars’ existing cash resources, including amounts drawn under the revolver, and the net proceeds of the $1.7 billion equity raise that priced on Tuesday.
However, the committed credit facilities may be used to fund the acquisition in lieu of some of the funds mentioned above.
A presentation filed by the company said that $2 billion of non-recourse debt facilities secured against William Hill’s non-U.S. businesses may be used for the acquisition and that no incremental debt would be taken out on Caesars’ U.S. parent or subsidiaries.
Caesars is buying William Hill for about £2.9 billion.
Closing is expected in the second half of 2021, subject to anti-trust and regulatory approvals and the approval of William Hill shareholders.
Caesars is a Reno, Nev.-based gaming-entertainment company. William Hill is a London-based betting and gaming company.
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