Caesars Entertainment talks $1.5 billion tap of 9% notes due 2020 at 101-101.25; pricing Monday

By Paul A. Harris

Portland, Ore., Feb. 4 - Caesars Entertainment Corp. plans to price a $1.5 billion add-on to its 9% senior notes due 2020 (existing ratings B2/B) Monday afternoon, according to a syndicate source.

The issuing entities are Caesars Operating Escrow LLC and Caesars Escrow Corp., wholly owned unrestricted subsidiaries of Caesars Entertainment Operating Co., Inc.

The deal is being talked at 101 to 101.25, according to a trader.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners for the Rule 144A and Regulation S with registration rights deal.

The notes are callable with a make-whole call at Treasuries plus 50 bps until Feb. 15, 2016 and then become callable at 104.5.

Proceeds will be used to repay term loan debt.

The Las Vegas-based gaming and entertainment company priced the original $750 million issue at par on Aug. 15, 2012. A previous $750 million add-on priced at 98.25 to yield 9.336% on Dec. 6, 2012.

The new add-on notes will be fungible with the existing notes upon registration.

© 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.