New Issue: Caesars sells $300 million convertibles at Libor flat, up 70%

Nashville, March 31 - Caesars Entertainment Inc. sold $300 million of 20-year convertible senior unsecured floating-rate notes at par to yield the three-month Libor flat with a 70% initial conversion premium via joint bookrunners Deutsche Bank Securities and JPMorgan.

The Rule 144A issue priced at the cheap end of guidance for a yield of the three-month Libor minus 50 basis points to flat with a 70% to 75% initial conversion premium.

Holders will have full dividend protection.

The Las Vegas casino operator said proceeds would be used to pay down existing debt.

Terms of the deal are:

Issuer:	Caesars Entertainment Inc.
Issue:	Convertible senior unsecured floating-rate notes
Bookrunners:	Deutsche Bank Securities (stabilization agent) and JPMorgan
Joint lead managers:	Banc of America Securities and Citigroup Global Markets Inc.
Co-managers:	Scotia Capital, SG Cowen, Wells Fargo, Commerzbank, Royal Bank of Scotland
Amount:	$300 million
Greenshoe:	$75 million
Maturity:	April 15, 2024
Coupon:	3-mo Libor flat
Price:	Par
Yield:	3-mo Libor flat
Conversion premium:	70%
Conversion price:	$22.29
Conversion ratio:	44.8632
Contingent conversion:	120%
Call:	Non-callable for 5 years, then at par
Put:	In years 5, 10 and 15, at par
Price talk:	3-mo Libor minus 50 bps to flat, up 70-75%
Pricing date:	March 30, after the close
Settlement date:	April 7
Distribution:	Rule 144A

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