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
, 2023-01-25 16:50:00,
LAS VEGAS Y RENO, Nev., January 25, 2023 /PRNewswire/ — Caesars Entertainment, Inc. (NASDAQ: CZR) (the “Company” or “Caesars”) today announced the pricing of its previously announced new senior secured loan facility (the “New Term B Loan”). it will be incurred as an incremental term credit facility under the credit agreement governing your existing senior secured credit facilities. The total principal amount of the New B Term Loan was increased to $2.5 billion than previously announced $1.75 billion.
The Company expects the interest rate under the New Term B Loan to be the forward rate based on the guaranteed overnight funding rate (“SOFR Term”) plus a 10 basis point adjustment, subject to a floor of 50 basis points, plus an applicable margin of 325 basis points, which applicable margin is subject to a 25 basis point reduction based on the achievement of a net total leverage ratio of 3.75 to 1.00. The new term loan B is expected to be issued at an issue price equal to 99% of the principal amount and will mature in February 2030.
The Company intends to apply the net income of the $2.5 billion New Term B Loan and the net proceeds of the Company’s previously announced loan. $2.0 billion full principal amount 7,000% Senior Secured Notes due 2030 (the “New Secured Notes”) to pay all $3.4 billion Outstanding B Term Loans maturing in 2024 and the $1.0 billion Outstanding B-1 Term Loans Due 2025 From Caesars Resort…
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