Caesars gets lender approval on credit facility amend and extend

By Sara Rosenberg

New York, May 16 - Caesars Entertainment Operating Co. Inc. received approval from its lenders for its senior secured credit facility amendment and extension proposal, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Under the amendment, the company will 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 remaining revolver commitments held by consenting to lenders 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 is expected at Libor plus 425 basis points, up from non-extended pricing of Libor plus 300 bps, and on the extended revolver is expected at Libor plus 350 bps, up from non-extended pricing of Libor plus 300 bps.

In addition, the amendment allows 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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