Fitch rates Caesars loan CCC

Fitch Ratings said it assigned a CCC with a recovery rating of RR2 to $1.75 billion term loan B7 being proposed by Caesars Entertainment Operating Co.

Fitch said it believes that the issuance of the B7 term loan and the other contemplated transactions announced by Caesars Entertainment Corp. are negative for most debt holders.

The B7 term loan will mature January 2018 subject to certain conditions and will be pari passu with Caesars Entertainment Operating's existing first-lien debt, the agency said.

Caesars Entertainment Corp. has a long-term issuer default rating of CC.

Caesars Entertainment Operating has a long-term issuer default rating of CC, along with a CCC rating on its senior secured first-lien revolving credit facility and term loans with revised recovery rating of RR2, C rating with recovery rating of RR5 on its senior secured second-lien notes and senior unsecured notes with subsidiary guarantees and senior unsecured notes without subsidiary guarantees.

Caesars Entertainment Resort Properties, LLC has an issuer default rating of B-, along with a B+ rating and revised recovery rating of RR2 on its senior secured first-lien credit facility with recovery rating of RR2 and first-lien notes. There's a CCC rating and recovery rating of RR6 to its second-lien notes.

Caesars Growth Properties Holdings, LLC has an issuer default rating of B-, along with a BB- rating on its senior secured first-lien credit facility with a recovery rating of RR1 and B- rating on its second-lien notes with a recovery rating of RR4.

Corner Investment PropCo, LLC has a long-term issuer default rating of CCC and B- rating on its senior secured credit facility with a recovery rating of RR2.

Chester Downs and Marina LLC has a long-term issuer default rating of B- and BB- rating on its senior secured notes with recovery rating of RR1.

If the transactions are executed as contemplated by Caesars the first-lien debt will be diluted with about $920 million of incremental first-lien debt, Fitch said.

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