Resorts International to launch $1.06 billion credit facility Thursday

By Sara Rosenberg

New York, March 1 - Resorts International Holdings LLC, an affiliate of Colony Capital LLC, is scheduled to hold a bank meeting on Thursday to launch its proposed $1.06 billion credit facility, according to market sources.

Deutsche Bank and Goldman Sachs are joint bookrunners on the deal, with Deutsche the left lead.

The facility consists of a $75 million revolver (B+), a $585 million term loan B (B+) and a $400 million second-lien term loan (B-), sources said.

Market chatter is that the term loan B is talked in the Libor plus 325 to 350 basis points range and the second-lien term loan is talked in the Libor plus 700 basis points area, according to one source.

Proceeds will be used to help fund Colony Capital's acquisition of four casinos - two properties from Harrah's Entertainment Inc. and two properties from Caesars Entertainment Inc.

Colony, a Los Angeles-based real estate investment fund, will acquire Harrah's East Chicago and Harrah's Tunica for about $627 million and Caesars' Atlantic City Hilton and Bally's Tunica for about $612 million.

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