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Credit Suisse Agents $1.435B Facility Pricing to Support Caesars Restructuring

April 05, 2017, 07:10 AM
Filed Under: Bankruptcy

Caesars Entertainment Corporation and Caesars Entertainment Operating Company, Inc. (CEOC) and its Chapter 11 debtor subsidiaries announced the pricing of $1.435 billion of senior secured credit facilities for CEOC, 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 Term Facility was oversubscribed.

The interest rate under the new Term Facility is equal to either, at CEOC’s option, (a) the London Interbank Offered Rate (LIBOR) plus 250 basis points with no LIBOR floor or (b) 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 Chief Executive Officer 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 United States 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 AG is serving as sole administrative agent for the Senior Facilities. Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. served as joint lead arrangers for the Senior Facilities and Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Barclays Bank PLC, Citigroup Global Markets Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, N.A., Morgan Stanley and UBS Securities LLC served as joint bookrunners for the Senior Facilities.

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