Caesars Entertainment completed its previously announced $265 million incremental term loan facility as an add-on to CEOC’s existing $1.435 billion of senior secured credit facilities.
According to a related 8-K filing, Credit Suisse Cayman Islands served as administrative agent and collateral agent.
The existing facility includes a $1.235 billion seven-year senior secured term loan facility and an undrawn $200 million five-year senior secured revolving credit facility.
The incremental term loan was offered at par and has the same terms as the existing term loans outstanding under CEOC’s existing credit agreement, dated October 6, 2017, including the same applicable interest rate at the LIBOR + 250 basis points and the same October 6, 2024 maturity date. CEOC used the net cash proceeds from the incremental term loan together with cash on hand to redeem all of the outstanding senior secured notes issued by CEOC’s subsidiaries Chester Downs and Marina, the owner of Harrah’s Philadelphia Casino and Racetrack and Chester Downs Finance.
“The closing of the add-on term loan reduces our annual interest expense by $20 million,” said Mark Frissora, president and CEO. “We expect those savings to reach a total of $290 million upon completion of other recently announced refinancing activities.”
Las Vegas-based Caesars Entertainment is a diversified casino-entertainment provider and a U.S. casino-entertainment company.