Caesars Entertainment has closed a new $3bn senior secured credit facility as it seeks to maintain a favorable balance sheet.
Forming the total facility is a new $750m senior secured loan and a new $2.25bn senior secured revolving credit facility, which resulted from an increase and extension of Caesars’ existing revolving terms.
Bret Yunker, Chief Financial Officer of Caesars Entertainment Inc., explained: “We are excited to complete this new financing and greatly appreciate the support of our 16 domestic and international banking partners.
This refinancing transaction will reduce interest expense while also extending debt maturities.”
Following the updated terms of the new credit agreement, Caesars confirmed it had retired Caesars Resort Collection’s existing revolving credit facility, using the funds of the Term A loan to prepay $750m of the subsidiary’s term B loans scheduled for December 2024.
Caesars secured the credit facilities with an interest rate of the forward-looking term rate based on the confirmed overnight financing rate, plus 10 basis points and an applicable margin of 225 basis points
The applicable margin is subject to three 25-point step-downs based on the achievement of certain net total leverage ratios.
Caesars was advised on the facility by Latham & Watkins, who served as legal counsel, and JP Morgan, who served as an administrative agent.