Rock Ohio lifts spread on $150 million term loan to Libor plus 700 bps

By Sara Rosenberg

New York, Aug. 11 - Rock Ohio Caesars LLC raised pricing on its term loan to Libor plus 700 basis points from Libor plus 650 bps and increased the size to $150 million from $125 million, according to a market source.

Also, the original issue discount was widened to 97 from 98, the source said.

The term loan upsizing was done to account for the higher interest expense and original issue discount, the source added.

The 1.5% Libor floor and call protection of non-callable for two years, then at 102 in year three and 101 in year four were left unchanged.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Citadel Securities LLC are the lead banks on the deal.

Proceeds will be used to help fund the development of casinos in Cleveland and Cincinnati.

Other funds for the transaction will come from a $62.5 million 12-month delayed-draw term loan, a $62.5 million 18-month delayed-draw term loan and $380 million of second-lien notes. The delayed-draw loans are not being syndicated.

Rock Ohio Caesars is a joint venture formed by Rock Gaming LLC and Caesars Entertainment Corp.

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