Bloomberg News

Caesars Entertainment Said to Set Interest Rate on Term Loan

February 03, 2012

Feb. 3 (Bloomberg) -- Caesars Entertainment Corp., the hotel and casino operato seeking to extend as much as $4 billion of term loans to January 2018 from January 2015 set the rate on the deal, according to a person with knowledge of the transaction.

The extended debt will pay interest at 4.5 percentage points to 4.75 percentage points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private.

If $3.25 billion or less of term loans are extended the debt will pay 4.5 percentage points more than Libor and if maturities on more than $3.25 billion are pushed out the interest will be at 4.75 percentage points more than Libor, the person said.

Lenders are being offered a 10 basis point amendment fee as well as a 15 basis point fee to agree to the extension, the person said. A basis point is 0.01 percentage point.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

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


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