Caesars unit obtains commitment for $2.2 billion of plan financing

By Caroline Salls

Pittsburgh, Sept. 5 – Caesars Entertainment Operating Co., Inc. and its Chapter 11 debtor subsidiaries (collectively, CEOC) obtained committed financing for $2.2 billion of proceeds to finance the fee and leasehold interests in Caesars Palace Las Vegas, according to a company news release.

The proceeds from this new-money financing for a to-be-formed real estate investment trust will be used to repay CEOC’s existing debt in accordance with the terms of its plan of reorganization.

CEOC said the financing is comprised of a $1.55 billion mortgage loan, a $200 million senior mezzanine loan, a $200 million intermediate mezzanine loan and a $250 million junior mezzanine loan.

JPMorgan Chase Bank, NA, Barclays plc, Goldman Sachs Mortgage Co. and Morgan Stanley Bank, NA committed to provide the mortgage loan, and other lenders committed to provide the mezzanine loans.

Caesars is a Las Vegas-based casino-entertainment company that filed for bankruptcy on Jan. 15, 2015. The Chapter 11 case number is 15-01145.

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