Rock Ohio Caesars plans $380 million bonds to help fund Ohio casinos

By Paul Deckelman

New York, July 26 - Rock Ohio Caesars LLC plans to sell $380 million of senior secured second-lien notes as part of the financing that the gaming industry joint venture has lined up to fund its construction of casinos in Cleveland and Cincinnati.

High-yield market sources said Tuesday that there were no other firm details on the bond portion of the financing out, suggesting that the company would first work on the bank financing component of the project.

Rock Ohio - an entity formed by Livonia, Mich.-based Rock Gaming LLC, controlled by Dan Gilbert, the owner of the Cleveland Cavaliers NBA team, and the giant Las Vegas-based casino operator Caesars Entertainment Corp. - is expected to hold a bank meeting on Wednesday to launch a proposed $125 million term loan via lead banks Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.

Besides that term loan, the company is also entering into a $62.5 million 12-month delayed-draw term loan, a $62.5 million 18-month delayed-draw term loan and the $380 million bond deal.

When they announced their joint venture back in December, Rock Gaming and Caesars said that the new company expects to invest $400 million in the Cincinnati project and $600 million in Cleveland.

Sara Rosenberg contributed to this report

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