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Caesars Entertainment, Inc. Announces Pricing of New $2.5 Billion Senior Secured Term Loan Facility and Expected Repayment of All Outstanding CRC Term B Loans due 2024 and Term B-1 Loans due 2025
LAS VEGAS and RENO, Nev., Jan. 25, 2023 /PRNewswire/ -- Caesars Entertainment, Inc. (NASDAQ: CZR) (the "Company" or "Caesars") today announced the pricing of
About this update from Caesars Entertainment, Inc.
[{"type":"text","content":"LAS VEGAS and RENO, Nev., Jan. 25, 2023 /PRNewswire/ -- Caesars Entertainment, Inc. (NASDAQ: CZR) (the \"Company\" or \"Caesars\") today announced the pricing of its previously announced new senior secured term loan facility (the \"New Term B Loan\") to be incurred as an incremental term loan facility under the credit agreement that governs its existing senior secured credit facilities. The aggregate principal amount of the New Term B Loan was increased to $2.5 billion from the previously announced $1.75 billion.\n\n \n \n \n \n \n \n\n \nThe Company expects the interest rate under the New Term B Loan to be the forward-looking term rate based on the secured overnight financing rate (\"Term SOFR\") plus an adjustment of 10 basis points, subject to a floor of 50 basis points, plus an applicable margin of 325 basis points, which applicable margin is subject to one 25 basis point step-down based on the achievement of a net total leverage ratio of 3.75 to 1.00. The New Term B Loan is expected to be issued at an issue price equal to 99% of the principal amount and to mature in February 2030.\nThe Company intends to apply the net proceeds of the $2.5 billion New Term B Loan and the net proceeds of the Company's previously announced $2.0 billion aggregate principal amount 7.000% Senior Secured Notes due 2030 (the \"New Secured Notes\") to repay all of the $3.4 billion outstanding Term B Loans due 2024 and the $1.0 billion outstanding Term B-1 Loans due 2025 of Caesars Resort Collection, LLC, a wholly-owned subsidiary of the Company (\"CRC\"), together with all accrued interest thereon, and any remaining proceeds therefrom will be used by the Company for general corporate purposes.\nThe New Term B Loan and the offering of the New Secured Notes are expected to close on or about February 6, 2023, subject to customary closing conditions, including the finalization and execution of definitive documentation.\nForward-looking Statements \nThis announcement includes \"forward-looking statements\" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding our strategies, objectives and plans for future development or acquisitions of properties or operations, as well as expectations, future operating result...