Caesars closes $3bn in senior secured credit facilities
Caesars Entertainment has announced it has closed $3bn in senior secured credit facilities, causing its share price to rise.
The senior secured credit facilities consist of a $750m senior secured term loan and $2.25bn in a new senior secured revolving credit facility, resulting in an increase and extension to the company’s existing revolving credit facility.
Bret Yunker, CFO of Caesars Entertainment, said: “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.”
The closure means Caesars have now retired Caesars Resort Collection LLC’s (CRC) revolving credit facility and used the proceeds to pay $750m of CRC’s existing term B loans, which were due to be repaid by December 2024.
As of 7 October, the share price of Caesars jumped at the news and has remained steadily higher compared to earlier in the week.
For Q2 2022, Caesars generated $2.8bn in total revenue and posted an EBITDA record for its Vegas operations – totalling $547m, representing a 29% rise from 2021’s $423m.
Caesars Entertainment CEO Tom Reeg added: “Our second quarter results reflect a consolidated EBITDA record for our brick-and-mortar properties led by an all-time quarterly EBITDA record in Las Vegas and continued strength in our regional markets when compared to 2019.”
“Operating results in our digital segment improved dramatically versus the first quarter, and we are optimistic regarding trends in this segment for the balance of the year.”
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