Caesars has secured a $750.0m senior secured term loan and a new $2.25bn senior secured revolving credit facility, resulting from an increase and extension to its existing revolving credit facility.
Additionally, Caesars has retired the existing revolving credit facility of its subsidiary, Caesars Resort Collection (CRC), and utilized the proceeds from the new term loan to repay $750.0m of CRC’s existing term B loans.
Caesars’ chief financial officer, Bret Yunker, expressed gratitude to the company’s 16 domestic and international banking partners for their support in completing this financing. Yunker also emphasized that this refinancing transaction will reduce interest expense and extend debt maturities.
The legal counsel for Caesars in this process was Latham & Watkins, LLP, while JPMorgan Chase Bank NA will continue to serve as the administrative agent.
Despite experiencing an improvement in the second quarter, Caesars reported a net loss of $692.0m for its digital division in the first half of the 2022 financial year. This came after a $576.0m net loss in the division during the first quarter, along with negative net revenue of $53.0m.
Caesars’ CEO, Tom Reeg, acknowledged the need to reduce costs, particularly in marketing and advertising, to address these losses. There were some positive signs in the second quarter, with digital revenue reaching $152.0m, representing a 29.9% increase compared to the previous year. However, the division’s net loss of $116.0m in the quarter, combined with the Q1 loss, resulted in a net loss of $692.0m for the first half.
