Caesars closes new $3.0bn senior secured credit facilities
The facilities include a $750.0m senior secured term loan and a new $2.25bn senior secured revolving credit facility. The funds result from an increase and extension to Caesars’ existing revolving credit facility.
Caesars also confirmed it had retired Caesars Resort Collection’s (CRC) existing revolving credit facility, while proceeds of the new term loan were used to repay $750.0m of CRC’s existing term B loans due December 2024.
“We are excited to complete this new financing and greatly appreciate the support of our 16 domestic and international banking partners,” Caesars’ chief financial officer Bret Yunker said. “This refinancing transaction will reduce interest expense while also extending debt maturities.”
Latham & Watkins, LLP served as legal counsel for Caesars, while JPMorgan Chase Bank, N.A. will continue to serve as administrative agent.
The new financing comes after Caesars in August posted a $692.0m net loss for its digital division in the first half of its 2022 financial year, despite the business experiencing an improvement during the second quarter.
Caesars in the first quarter of 2022 posted a $576.0m net loss for its digital business, as well as negative net revenue of $53.0m. At the time, chief executive Tom Reeg said the operator had already taken steps to lower costs to help address this, particularly within marketing and advertising.
This appeared to have started to have an impact in the second quarter, with digital revenue positive at $152.0m, a significant improvement on Q1 and also 29.9% higher than last year.
However, Caesars posted a net loss of $116.0m for the division during the quarter, which, when coupled with the Q1 loss, meant the division produced a net loss of $692.0m for the first half.