New Issue: Caesars Entertainment prices restructured $750 million 9% notes due 2020 at par

By Paul A. Harris

Portland, Ore., Aug. 15 - Caesars Entertainment priced a restructured $750 million issue of senior secured notes due Feb. 15, 2020 (B2/B/) at par to yield 9% on Wednesday, according to a syndicate source.

The yield printed at the wide end of the 8¾% to 9% yield talk.

The quick-to-market deal was announced early on Wednesday as an add-on to the company's existing 8½% senior secured notes due Feb. 15, 2020.

Citigroup Global Markets Inc. was the left bookrunner. Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.

The issuing entities were Caesars Operating Escrow LLC and Caesars Escrow Corp., which will be assumed by Caesars Entertainment Operating Co., Inc., (CEOC) a Las Vegas-based gaming and entertainment company.

Upon release from escrow, the proceeds will be used to repay a portion of the CEOC senior secured credit facilities, to the extent existing term loan lenders participate in the extension offer, and/or for general corporate purposes.

Issuers:	Caesars Operating Escrow LLC and Caesars Escrow Corp. to be assumed by Caesars Entertainment Operating Co., Inc.
Amount:	$750 million
Maturity:	Feb. 15, 2020
Securities:	Senior secured notes, restructured from add-on to existing 8½% senior secured notes due Feb. 15, 2020
Left bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
Coupon:	9%
Price:	Par
Yield:	9%
Spread:	719 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Feb. 15, 2016, then callable at 104.5, 102.25, par on and after Feb. 15, 2018
Equity clawback:	35% at 109 until Feb. 15, 2015
Change-of-control put:	101%
Trade date:	Aug. 15
Settlement date:	Aug. 22
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A with registration rights
Price talk:	8¾% to 9%
Marketing:	Quick to market

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.