Caesars talks $3 billion term loan with 550 bps Libor spread at 99

By Paul A. Harris

Portland, Ore., Sept. 20 - Caesars Entertainment Resort Properties talked its $3 billion seven-year senior secured first-lien term loan (B2/B) with a Libor spread of 550 basis points and a 1% Libor floor with an original issue discount of 99, a market source said on Friday.

The loan is callable after one year at 102 and after two years at 101. It amortizes at 1% annually.

Commitments are due on Sept. 27.

Joint lead arranger Citigroup is the administrative agent. BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., JP Morgan Securities LLC, Goldman Sachs & Co, Macquarie, Morgan Stanley & Co. and UBS Investment Bank are also joint lead arrangers.

The $3,269,500,000 senior secured credit facility also has $269.5 million revolver.

Proceeds will be used to help refinance about $4.4 billion of CMBS debt and the $450 million senior secured credit facility entered into by Octavius Linq Holding Co. LLC, an indirect subsidiary of Caesars.

Concurrently with the closing of the new financing, Caesars intends to transfer the equity interests in the subsidiaries of Octavius/Linq Holdings that own the assets comprising Octavius Tower at Caesars Palace Las Vegas and Project Linq to Rio Properties, LLC, an indirect subsidiary of Caesars, which will be a borrower and issuer under the new financing.

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

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