Caesars Entertainment flexes term loan B-7 to Libor plus 875 bps

By Sara Rosenberg

New York, May 12 - Caesars Entertainment Operating Co. reduced pricing on its $1.75 billion incremental term loan B-7 (NA/NA/CCC) due March 1, 2017 to Libor plus 875 basis points from Libor plus 950 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 99¼ from 98, the source said.

The term loan still has a 1% Libor floor, call protection of non-callable for six months, then at 101 for six months, and a springing maturity.

Recommitments were due at 5 p.m. ET on Monday, the source added.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Macquarie Capital are the leads on the deal.

Proceeds will be used to refinance existing debt due in 2015 and existing term loans and for general corporate purposes.

Furthermore, the company is talking to lenders about an amendment to its existing senior secured credit facility to increase the leverage ratio level and exclude incremental term loans incurred after March 31 from the definition of senior secured leverage ratio.

Lenders that consent to the amendment will receive a principal paydown of up to $400 million of the outstanding term loans and a one-time fee.

Caesars is a Las Vegas-based diversified casino-entertainment company.

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