By Paul A. Harris
Portland, Ore., Sept. 10 – Caesars Entertainment Inc. priced an upsized $1.2 billion issue of eight-year senior notes (Caa1/CCC+) at par to yield 4 5/8% in a Friday drive-by, according to market sources.
The issue size increased from $1 billion.
The yield printed 12.5 basis points tighter than the 4¾% to 5% yield talk. Initial guidance was in the low 5% area.
The deal was a blowout, market sources said.
At the time of the upsize it was playing to around $6 billion of demand, a trader said.
Credit Suisse Securities (USA) LLC is the left bookrunner. J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., BofA Securities Inc., Goldman Sachs & Co. LLC, Macquarie Capital (USA) Inc., Truist Securities Inc., U.S. Bancorp Investments Inc. and Citizens Capital Markets Inc. are the joint bookrunners.
The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback and a 101% poison put.
The Las Vegas-based gaming and lodging company plans to use the proceeds plus cash on hand to retire its 5¼% senior notes due 2025. The incremental proceeds resulting from the $200 million upsizing of the deal will be used for general corporate purposes, which could include debt repayment.
| Issuer: | Caesars Entertainment Inc.
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| Amount: | $1.2 billion, increased from $1 billion
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| Maturity: | Oct. 15, 2029
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| Securities: | Senior notes
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| Left bookrunner: | Credit Suisse Securities (USA) LLC
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| Joint bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., BofA Securities Inc., Goldman Sachs & Co. LLC, Macquarie Capital (USA) Inc., Truist Securities Inc., U.S. Bancorp Investments Inc. and Citizens Capital Markets Inc.
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| Co-managers: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Fifth Third Securities Inc., KeyBanc Capital Markets Inc., Barclays, Rice Financial Products Inc. and CBRE
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| Coupon: | 4 5/8%
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| Price: | Par
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| Yield: | 4 5/8%
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| First call: | Oct. 15, 2024 at 102.31
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| Trade date: | Sept. 10
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| Settlement date: | Sept. 24
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| Ratings: | Moody's: Caa1
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| S&P: CCC+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 4¾% to 5%
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| Marketing: | Drive-by
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