Caesars to repay term loans, amend credit facilities via note proceeds

By Tali David

Minneapolis, Feb. 4 - Caesars Entertainment Corp. plans to use the proceeds from an offering of $1.5 billion of 9% senior secured notes due 2020 to repay some outstanding term loans and pay related fees and expenses, according to a news release. Subsidiaries Caesars Operating Escrow LLC and Caesars Escrow Corp. will conduct the notes offering.

In connection with the offering, the company said that Caesars Entertainment Operating Co., Inc. will seek amendments to its senior secured credit facilities so that the notes proceeds may be used to repay all outstanding B-1, B-2 and B-3 term loans held by consenting lenders, 20% of the principal amount of its B-5 and B-6 term loans held by consenting lenders and, if any proceeds remain outstanding, other outstanding term loans, subject to Caesars' discretion.

According to an 8-K filed Monday with the Securities and Exchange Commission, the company also plans to obtain up to $100 million of extended revolving facility commitments with a maturity of Jan. 28, 2017, increase the accordion capacity under the senior secured credit facilities by an additional $650 million, the proceeds of which may be used, among other things, to establish extended revolving facility commitments under the senior secured credit facilities, to modify the calculation of the senior secured leverage ratio for purposes of the maintenance test under the senior secured credit facilities to exclude the notes and to modify certain other provisions of the senior secured credit facilities.

Caesars is a Las Vegas-based diversified casino-entertainment company.

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