Caesars Entertainment Secures $3 Billion Credit Facility to Reduce Debt and Extend Maturities

Caesars Entertainment experienced a surge in its share value following the announcement of a fresh $3 billion secured credit agreement. The arrangement encompasses a $750 million term loan and a $2.25 billion revolving credit facility. This new credit facility takes the place of a previous one and prolongs its expiration date.

Caesars’ Chief Financial Officer, Bret Yunker, conveyed appreciation for the backing from the company’s 16 lending associates and emphasized that this financial restructuring will diminish interest outlays while also deferring debt repayment deadlines.

This action enabled Caesars to settle the outstanding credit line of Caesars Resort Collection (CRC), a subsidiary under Caesars. The remaining capital was allocated to retire a $750 million term loan, which was scheduled to reach maturity in December 2024.

As of October 7th, Caesars’ share price escalated on the news and has sustained its elevated position compared to the beginning of the week.

This favorable progression follows a robust second quarter for Caesars, during which the company disclosed a 10.6% revenue upswing, predominantly driven by its Las Vegas ventures.

Caesars produced $2.8 billion in revenue in the second quarter of 2022. The company’s Las Vegas holdings attained an unprecedented $5.47 billion in EBITDA, a substantial leap from the $4.23 billion registered in the corresponding timeframe last year.

Caesars Entertainment achieved unprecedented consolidated property earnings before interest, taxes, depreciation, and amortization (EBITDA) in the recent quarter, driven by peak performance in Las Vegas and sustained growth in regional markets relative to 2019,” stated Tom Reeg, Chief Executive Officer.

Reeg further noted, “Our online division also experienced substantial progress from the initial quarter, and we maintain a positive outlook on its course for the remainder of the year.”