Daily News: April 5, 2017

Credit Suisse Agents $1.43B Facility for Caesars

Caesars Entertainment and Caesars Entertainment Operating Company and its Chapter 11 debtor subsidiaries finalized pricing of $1.435 billion of senior secured credit facilities, consisting of a $1.235 billion seven-year senior secured term loan facility and a $200 million five-year senior secured revolving credit facility.

The interest rate under the new term facility is equal to either, at CEOC’s option, LIBOR + 250 basis points with no LIBOR floor or the adjusted base rate plus 150 basis points, and the term facility will be issued at 99.5% of par.

“Pricing of the senior facilities is another important milestone in the process to complete CEOC’s restructuring,” said Mark Frissora, president and CEO of Caesars Entertainment.

The closing of the senior facilities is anticipated to occur in connection with CEOC’s emergence from bankruptcy in the summer of 2017, subject to the negotiation and execution of definitive documentation, receipt of all required regulatory approvals and satisfaction of other customary closing conditions.

CEOC’s emergence from bankruptcy is subject to the receipt of all required regulatory approvals, completion of the merger of Caesars Entertainment and Caesars Acquisition Company, certain other financing activities, continuing oversight by the U.S. Bankruptcy Court, and other customary closing conditions.

The proceeds from the term facility will be used to finance transactions in connection with CEOC’s emergence from bankruptcy in accordance with CEOC’s plan of reorganization, including to repay existing indebtedness and to pay related fees and expenses.

Credit Suisse served as sole administrative agent for the senior facilities. Credit Suisse Securities (USA) and Deutsche Bank Securities served as joint lead arrangers, and Credit Suisse Securities (USA), Deutsche Bank Securities, Barclays Bank, Citigroup Global Markets, Goldman Sachs Bank , JPMorgan Chase, Morgan Stanley and UBS Securities served as joint bookrunners.