{"id":255702,"date":"2023-01-25T18:49:58","date_gmt":"2023-01-26T00:49:58","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=255702"},"modified":"2023-01-26T14:36:45","modified_gmt":"2023-01-26T20:36:45","slug":"caesars-ups-debt-offering-eliminating-more-outstanding-liabilities","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/","title":{"rendered":"Caesars Ups Term Loan to $2.5B, Wiping Out Some 2024, 2025 Debt"},"content":{"rendered":"

Caesars Entertainment (NASDAQ: CZR) announced late Wednesday that it is upping the size of a previously revealed senior secured term loan facility to $2.5 billion from $1.75 billion — a move that will help the casino operator eliminate $4.4 billion in debt coming due in 2024 and 2025.<\/p>\n

\"Caesars
Caesars Palace Las Vegas. The operator announced an upsized debt offering today. (Image: Caesars Entertainment)<\/figcaption><\/figure>\n

On Monday, the Nevada-based gaming company announced<\/a> it\u2019s selling $1.25 billion in senior unsecured notes due in 2030 and is gaining access to a new $1.75 billion senior secured term loan facility.<\/p>\n

Analysts initially expected those moves would eliminate the operator\u2019s $3.4 billion worth of Term B loans coming due next year. But with today\u2019s news, Caesars can also pay off $1 billion in outstanding Term B-1 Loans maturing in 2025.<\/p>\n

The Company expects the interest rate under the New Term B Loan to be the forward-looking term rate based on the secured overnight financing rate plus an adjustment of 10 basis points, subject to a floor of 50 basis points, plus an applicable margin of 325 basis points, which applicable margin is subject to one 25 basis point step-down based on the achievement of a net total leverage ratio of 3.75 to 1.00,\u201d according to a statement issued by the company.<\/p><\/blockquote>\n

The offering of the new secured notes and the term loan is expected to close on or about Feb. 6.<\/p>\n

Why It Matters to Caesars Investors<\/h2>\n

On a net basis, Caesars isn\u2019t eliminating debt. Rather, it\u2019s pushing out maturities. But that\u2019s still significant because the company had $13.7 billion in liabilities at the end of the third quarter.<\/p>\n

\n

That\u2019s one of the largest debut burdens in the gaming industry and well in excess of Caesars\u2019 closing market capitalization today of $10.66 billion. In an environment where interest rates are high, and the appetite for junk bonds courtesy of already heavily indebted issuers may be limited, pushing out maturities without incurring higher interest rates is advantageous for the gaming giant.<\/p>\n<\/div>\n

The Harrah\u2019s operator has made similar moves in the past. Last October, Caesars landed $3 billion<\/a> in new senior secured credit facilities maturing in 2028, allowing it to push out maturities while reducing interest expenses.<\/p>\n

Owing to a junk credit rating, Caesars paid $2.3 billion in interest expense over the past reporting year \u2014 a negative in any environment. But even more so when interest rates are high, as is the case today.<\/p>\n

Good News for Caesars Investors<\/h2>\n

Market participants\u2019 reaction to Caesars boosting the size of the term loan was mostly muted, as the shares traded higher by half a percent in after-hours trading after jumping 1.49% in standard trading hours.<\/p>\n

Still, the news is positive for investors, particularly bondholders, because the Horseshoe operator is gaining much-needed breathing room with which to trim its debt. Plus, analysts were bullish<\/a> on the original debt engineering moves.<\/p>\n

That view is being rewarded, as shares of Caesars are higher by 9.92% over the past week and 24.64% since the start of the year.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Caesars Entertainment (NASDAQ: CZR) announced late Wednesday that it is upping the size of a previously revealed senior secured term loan facility to $2.5 billion from $1.75 billion — a move that will help the casino operator eliminate $4.4 billion in debt coming due in 2024 and 2025. On Monday, the Nevada-based gaming company announced […]<\/p>\n","protected":false},"author":46,"featured_media":255703,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[81897,81903],"acf":[],"yoast_head":"\nCaesars Ups Debt Offering, Eliminating More Outstanding Liabilities<\/title>\n<meta name=\"description\" content=\"Caesars boosts term loan offering, adding more financial flexibility.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars Ups Debt Offering, Eliminating More Outstanding Liabilities\" \/>\n<meta property=\"og:description\" content=\"Caesars boosts term loan offering, adding more financial flexibility.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-26T00:49:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-26T20:36:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2500\" \/>\n\t<meta property=\"og:image:height\" content=\"1766\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/\",\"url\":\"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/\",\"name\":\"Caesars Ups Debt Offering, Eliminating More Outstanding Liabilities\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-2.jpg\",\"datePublished\":\"2023-01-26T00:49:58+00:00\",\"dateModified\":\"2023-01-26T20:36:45+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Caesars boosts term loan offering, adding more financial flexibility.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-2.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-2.jpg\",\"width\":2500,\"height\":1766,\"caption\":\"Caesars Palace Las Vegas. The operator announced an upsized debt offering today. (Image: Caesars Entertainment)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Caesars Ups Term Loan to $2.5B, Wiping Out Some 2024, 2025 Debt\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Caesars Ups Debt Offering, Eliminating More Outstanding Liabilities","description":"Caesars boosts term loan offering, adding more financial flexibility.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/","og_locale":"en_US","og_type":"article","og_title":"Caesars Ups Debt Offering, Eliminating More Outstanding Liabilities","og_description":"Caesars boosts term loan offering, adding more financial flexibility.","og_url":"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2023-01-26T00:49:58+00:00","article_modified_time":"2023-01-26T20:36:45+00:00","og_image":[{"width":2500,"height":1766,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-2.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/","url":"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/","name":"Caesars Ups Debt Offering, Eliminating More Outstanding Liabilities","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-2.jpg","datePublished":"2023-01-26T00:49:58+00:00","dateModified":"2023-01-26T20:36:45+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Caesars boosts term loan offering, adding more financial flexibility.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-2.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/CP-2.jpg","width":2500,"height":1766,"caption":"Caesars Palace Las Vegas. The operator announced an upsized debt offering today. (Image: Caesars Entertainment)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/caesars-ups-debt-offering-eliminating-more-outstanding-liabilities\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Caesars Ups Term Loan to $2.5B, Wiping Out Some 2024, 2025 Debt"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/255702"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=255702"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/255702\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/255703"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=255702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=255702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=255702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}