Caesars Growth Properties launches $700 million term loan to investors

By Sara Rosenberg

New York, May 7 - Caesars Growth Properties Holdings LLC launched a $700 million first-lien term loan that is talked with pricing of Libor plus 600 basis points for 30 days, stepping up to Libor plus 700 bps for the rest of year one and Libor plus 800 bps for year two, according to a market source.

The term loan is also talked with a 1% Libor floor and an original issue discount of 99 plus a 1% extension fee that is payable if the debt is still outstanding at year two, the source said.

The term loan matures in one year and has the potential for a one-year extension.

Commitments are due on Friday, the source added.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to help fund the now completed acquisition of Bally's Las Vegas, the Cromwell and the Quad Resort & Casino from Caesars Entertainment Operating Co. Inc.

The company plans on completing its purchase of Harrah's New Orleans, following approval by the Louisiana Gaming Control Board, during the second quarter of 2014.

Upon the closing of the purchase of Harrah's New Orleans, the company intends to refinance the $700 million term loan with a $2 billion financing, which also includes the refinancing of $485 million of debt outstanding for Planet Hollywood.

As previously reported, the company has already priced $675 million of notes for this purpose and syndicated a $1,325,000,000 senior secured credit facility (B2/B+/BB-).

The credit facility consists of a $150 million revolver, and a $1,175,000,000 seven-year first-lien term loan priced at Libor plus 525 bps with a 1% Libor floor and sold at an original issue discount of 991/2. The term loan is non-callable for one year, then at 101 in year two.

During syndication, pricing on the term loan was flexed from Libor plus 575 bps and the discount was revised from 99.

Caesars Growth is a Las Vegas-based casino asset and entertainment company.

© 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.