Caesars Entertainment launches credit facility amend and extend

By Sara Rosenberg

New York, May 4 - Caesars Entertainment Operating Co. Inc. held a call at 1:30 p.m. ET on Wednesday to launch an amendment and extension of its senior secured credit facility, according to a market source.

Under the proposal, the company is looking to push out the maturity on B-1, B-2 and B-3 term loans to Jan. 28, 2018 from Jan. 20, 2015, convert up to $816 million of revolver commitments to extended term loans and extend the remaining revolver commitments to Jan. 28, 2015 from Jan. 28, 2014.

As of Dec. 31, the company had about $5.8 billion of outstanding term loan B-1, B-2 and B-3 debt, and the revolver had an aggregate principal amount of up to $1.63 billion.

Pricing on the extended term loan will be Libor plus 425 basis points, up from non-extended pricing of Libor plus 300 bps, and on the extended revolver will be Libor plus 350 bps, up from non-extended pricing of Libor plus 300 bps, the source said.

In addition, the amendment would allow the company to buy back at any time loans from individual lenders at negotiated prices that may be below par.

Bank of America Merrill Lynch is the lead bank on the deal.

Caesars is a Las Vegas-based casino entertainment company.

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