Caesars Entertainment and Caesars Acquisition announce pricing of CGPH USD 1.45B senior secured credit facility

CGPH is a wholly-owned subsidiary of Caesars Growth Partners, LLC, a joint venture between Caesars Entertainment and Caesars Acquisition.

The Term Facility consists of CGPH's existing approximately $1.14 billion term loan B due 2021 and the raise of an additional $175 million add-on term loan to repay all of the outstanding amounts under The Cromwell's property-specific term loan. The interest rate under the Term Facility and Revolver is the London Interbank Offered Rate ("LIBOR") plus 300 basis points, with a reduction to LIBOR plus 275 basis points upon the achievement of certain leverage ratios.

The CGPH repricing and add-on term loan lower CGPH's overall cost of capital, which will benefit the enterprise. The repricing is the latest step in the effort to optimize the balance sheet and improve free cash flow across the enterprise.

The closing of the add-on and repricing transactions is anticipated to occur during the week of April 24, 2017 subject to the negotiation and execution of definitive documentation, receipt of all required regulatory approvals and satisfaction of other customary closing conditions. The proceeds of the additional $175 million add-on term loan will be held in escrow until receipt of required regulatory approvals at which point it will be used to repay The Cromwell's property-specific term loan.