Caesars Entertainment Operating seeks $1.75 billion term loan B-7

By Sara Rosenberg

New York, May 6 - Caesars Entertainment Operating Co. is looking to raise a $1.75 billion incremental term loan B-7, according to a news release.

To date, the company has already received orders for about $1.7 billion of the new B-7 tranche due March 1, 2017 and will seek additional commitments this week.

Proceeds will be used with cash on hand to refinance existing debt due in 2015 and existing term loans.

And, the company expects to have discussions with representatives of certain holders of its first-lien notes to raise the possibility of increasing the size of the B-7 term loan and using a portion of the incremental proceeds to retire existing first-lien notes and additional credit facility debt.

The company also announced that it launched on Tuesday an amendment to its existing senior secured credit facility to increase the leverage ratio level and exclude incremental term loans incurred after March 31 from the definition of senior secured leverage ratio.

As a condition to the proposed financing, new B-7 lenders have required that the Caesars Entertainment Corp. guarantee of Caesars Entertainment Operating debt be limited to bank debt holders that consent to the amendment, plus no more than around $2.9 billion of additional debt.

Holders of about $2.1 billion of the credit facility have already approved the amendment.

Lenders that consent to the amendment will receive a principal paydown of up to $400 million of the outstanding term loans and a one-time fee.

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

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