Caesars Resort gets $5.7 billion five-year revolver, seven-year loan

By Susanna Moon

Chicago, Dec. 22 – Caesars Entertainment Corp. said its newly formed Caesars Resort Collection, LLC has obtained $5.7 billion senior secured credit facilities, consisting of a $1 billion five-year revolving credit facility and a $4.7 billion seven-year first-lien term loan.

Interest will be Libor plus 275 basis points for the term loan.

For the revolver, pricing will range from Libor plus 200 bps to 225 bps based on leverage.

Caesars also refinanced all the debt of its wholly owned subsidiaries Caesars Growth Properties Holdings, LLC and Caesars Entertainment Resort Properties, LLC, according to an 8-K filing with the Securities and Exchange Commission.

Caesars Entertainment merged into Caesars Growth on Friday, with the merged entity renamed Caesars Resort Collection, LLC, and CRC Escrow Issuer, LLC merged into Caesars Resort Collection.

The loans were obtained with Credit Suisse, AG, Cayman Islands Branch as administrative agent.

The credit agreement permits the company’s wholly owned subsidiary, CEOC, LLC, to join as an additional borrower or to be acquired by Caesars Resort Collection.

The term loan matures in 2024. The revolver matures in 2022 and includes a letter-of-credit sub-facility.

The term loan requires scheduled quarterly payments of 0.25% of the original principal amount of the CRC term loan, with the balance due at maturity. As of Friday, $300 million was outstanding under the revolver and about $100,000 was committed to outstanding letters of credit.

The credit agreement allows the borrowers to request one or more incremental term loans or to increase their commitments under the revolver in an amount of up to the greater of $1 billion, increasing to $1.45 billion after a CEOC event, and 1 times EBITDA plus the amount of voluntary prepayments plus the additional amount with some conditions.

The commitment fee is 0.50% of par, with stepdowns to 37.5 bps and 25 bps based on leverage. The fronting fee is 12.5 bps.

Caesars is a Las Vegas-based full-service gaming and entertainment company.

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