Caesars Entertainment Corporation subsidiary Caesars Entertainment Operating Company (CEOC) has priced a US$265 million add-on term loan facility in addition to its existing $1.435 billion of senior secured credit facilities.
In an announcement, Caesars said additional proceeds will be used, in addition to cash on hand, to repay all outstanding amounts under the existing senior secured notes issued by Chester Downs and Marina, LLC, the owner of Harrah’s Philadelphia Casino and Racetrack, and Chester Downs Finance Corp.
“The add-on term loan will save Caesars Entertainment approximately US$20 million in annual interest expense and is the latest step in the effort to optimize the balance sheet and improve free cash flow across the enterprise,” said President and CEO Mark Frissora. “Upon completion of this and other recently announced re-financings, Caesars’ annual interest expense will be reduced by more than $290 million in the aggregate.”
The add-on term loan will bear interest at the London Interbank Offered Rate plus 250 basis points and will be offered at par.
The funding and closing of the add-on transaction is anticipated to occur during the fourth quarter of 2017, subject to the negotiation and execution of definitive documentation, receipt of all required regulatory approvals and satisfaction of other customary closing conditions. Upon the funding and closing of the add-on term loan and the repayment of the existing indebtedness of Chester Downs and Chester Finance, it is expected that Chester Downs will become a guarantor under CEOC’s senior secured credit facilities.
Caesars has also announced the appointment of Chris Holdren as Chief Marketing Officer, effective from 1 November. Mr Holdren will be responsible for all of the company’s marketing initiatives, including the advancement of its Total Rewards loyalty network and Caesars Entertainment’s portfolio of gaming and hospitality brands.
Mr Holdren will join the company’s senior management team and report to Mr Frissora.
