Caesars Entertainment has announced plans to offer $1.25bn aggregate principal amount of senior secured notes due 2030 in a private placement to qualified institutional buyers.
The net proceeds of the sale of the notes and a new loan facility will be used to repay loans accrued by Caesars Resort Collection, LLC, a wholly owned subsidiary created in 2017 to amalgamate the debts of Caesars Growth Properties Holdings and Caesars Entertainment Resort Properties.
The group said the notes will be guaranteed on a senior secured basis by each existing and future wholly owned domestic subsidiary of the company that is a guarantor with respect to its senior secured credit facilities and its existing 6.25% senior secured notes due 2025, once certain regulatory approvals are obtained.
Caesars also said it expects to enter into an amendment to the CEI Credit Agreement, to provide for, among other things, a new $1.750bn senior secured term loan facility.
The closing of the new term B loan under the CEI Credit Agreement is not a condition to the closing of the sale of the notes, it added.
The group said it intends to apply the net proceeds of the sale of the notes, the new term B loan, borrowings under its existing revolving credit facility and cash on hand to repay all of the term B loans of Caesars Resort Collection, LLC, a wholly owned subsidiary of the company. This is together with all accrued interest, fees and premiums thereon, and pay fees and expenses related to the foregoing.
Caesars announced last year that as of July 2022 it had repaid approximately $770m of outstanding debt on a year-to-date basis, including a $630m repayment of the Caesars Resort Collection Term B-1 Loan and $100m of open market repurchases of our outstanding notes.