Caesars Seeks to Extend Maturity $4 Billion of Loans
(Corrects spelling of Caesars in headline.)
A unit of Caesars Entertainment Corp. (HET) 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.
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.
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