Bloomberg News

Caesars Seeks to Extend Maturity $4 Billion of Loans

February 02, 2012

(Corrects spelling of Caesars in headline.)

Feb. 2 (Bloomberg) -- A unit of Caesars Entertainment Corp. is seeking to push out the maturity on as much as $4 billion of term loans to January 2018 from January 2015 and plans to increase the interest rate on the extended debt.

Caesars Entertainment Operating Co. also plans to raise $1.25 billion of senior-secured debt and use as much as $1 billion of that to repay a portion of its outstanding term loans, the Las Vegas-based company said today in a regulatory filing.

The unit of Caesars, the casino company with $19.6 billion of long-term debt as of Sept. 30, also seeks to convert revolving credit commitments to extended term loans and extend the maturity of non-converted revolving commitments to January 2017 from January 2014, according to the filing.

The new debt would have a later maturity and a higher interest rate than the debt being repaid, the company said.

In a revolving credit, money can be borrowed again once it’s repaid; in a term loan, it can’t.

--Editors: {Chapin Wright}, {Faris Khan}

To contact the reporter on this story: Richard Bravo in New York at rbravo5@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.


Toyota's Hydrogen Man
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus