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Caesars Entertainment Resort launches $2.4 billion term loan repricing
By Sara Rosenberg
New York, April 27 – Caesars Entertainment Resort Properties LLC launched on its call on Thursday a $2,419,000,000 senior secured first-lien term loan (B1/CCC+) due October 2020 that is talked at Libor plus 375 basis points to 400 bps with a 1% Libor floor and a par issue price, according to a market source.
The term loan has 101 soft call protection for six months and amortization of 1% per annum through September 2018, then 2.5% per annum from the quarter beginning October 2018 through the quarter ending September 2019, and 5% per annum thereafter, the source said.
Negative covenants are substantially the same as the existing senior secured credit facilities with the exception that the general debt basket will be reduced to $165 million from $250 million so long as total leverage is greater than 6 times.
The accordion, so long as total leverage is greater than 6 times, is $200 million (reduced from $300 million) plus an unlimited amount subject to first-lien net leverage of 4.25 times in the case of pari passu secured debt or net senior secured debt of 6 times in the case of junior-lien debt or interest coverage of 2 times for unsecured debt, with 50 bps MFN, the source continued.
Citigroup Global Markets Inc. is the lead on the deal.
Proceeds will be used to reprice an existing term loan from Libor plus 600 bps with a 1% Libor floor.
Commitments from existing lenders are due at 5 p.m. ET on May 4 and from new lenders are due at 5 p.m. ET on May 5, the source added.
Caesars Entertainment Resort, a wholly owned subsidiary of Caesars Entertainment Corp., is a Las Vegas-based owner of casinos.
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