Resort facilities

Caesars completes new $3.0 billion senior secured credit facilities

Caesars Entertainment announced the closing of $3.0 billion (£2.7 billion / €301 billion) in new senior secured credit facilities.

The facilities include a $750.0 million senior secured term loan and a new $2.25 billion senior secured revolving credit facility. The funds come from an increase and extension of Caesars’ existing revolving credit facility.

Caesars also confirmed that it had withdrawn Caesars Resort Collection’s (CRC) existing revolving credit facility, while proceeds from the new term loan were used to repay $750.0 million of CRC’s existing Term B loans maturing in December 2024.

“We are thrilled to complete this new financing and greatly appreciate the support of our 16 domestic and international banking partners,” said Caesars Chief Financial Officer Bret Yunker. “This refinancing operation will reduce interest charges while extending debt maturities.”

Latham & Watkins, LLP served as legal counsel to Caesars, while JPMorgan Chase Bank, NA will continue to act as administrative agent.

The new funding comes after Caesars in August reported a net loss of $692.0 million for its digital division in the first half of its fiscal 2022, despite improving business in the second quarter.

Caesars in the first quarter of 2022 reported a net loss of $576.0 million for its digital business, along with negative net income of $53.0 million. At the time, chief executive Tom Reeg said the operator had already taken steps to cut costs to help address this issue, particularly in marketing and advertising.

This seems to have started to have an impact in the second quarter, with positive digital revenue of $152.0 million, a significant improvement over the first quarter and also 29.9% more than last year.

However, Caesars reported a net loss of $116.0 million for the division during the quarter, which, coupled with the first quarter loss, meant the division produced a net loss of $692.0 million. dollars for the first semester.