Caesars Resort rises in secondary with partial prepayment; Entain reveals price guidance

By Sara Rosenberg

New York, Oct. 6 – Caesars Resort Collection LLC’s term loan B headed higher in trading on Thursday following news of a paydown with new term loan A borrowings, while the secondary market in general was unchanged to up a quarter of a point.

Meanwhile, in the primary market, Entain Holdings Ltd. (GVC Finance LLC) released price talk on its term loan B in connection with its lender call.

Caesars strengthens

Caesars Resort’s term loan B due 2024 gained ground in the secondary market on the heels of the company’s disclosure that it prepaid $750 million of the debt with proceeds from a new term loan A at Caesars Entertainment Inc., a market source remarked.

The term loan B was quoted as high as 99 bid, 99¾ offered during Thursday’s session but settled in to 98¾ bid, 99½ offered by late day, the source continued. On Wednesday, the term loan B closed out the day at 97 7/8 bid, 98 5/8 offered.

Late Wednesday, Caesars Entertainment filed an 8-K with the Securities and Exchange Commission revealing that it closed on a new $750 million term loan A due Jan. 31, 2028 and amended its existing senior secured revolving credit facility to extend the maturity to Jan. 31, 2028 and increase the size to $2.25 billion.

Caesars Resort’s existing revolver was terminated in connection with the Caesars Entertainment revolver amendment and extension.

Pricing on the term loan A and revolver is SOFR+10 basis points CSA plus 225 bps with three 25 bps step-downs based on net total leverage and a 0% floor.

JPMorgan Chase Bank is the administrative agent on the term loan A and revolver.

Caesars is a Las Vegas-based gaming and hospitality company.

Loan indices

IHS Markit’s iBoxx loan indices rose on Wednesday, with the Leveraged Loan indexes (MiLLi) closing out the day up 0.06% and the Liquid Leveraged Loan indices (LLLi) closing out the day up 0.08%.

Month to date, the MiLLi is up 0.69% and year to date its down 2.96%. The LLLi is up 1.03% month to date and down 3.81% year to date.

Average secondary market bids in the U.S. on Wednesday were 92.60, up 0.04% from the previous day and down 4.39% year to date.

According to the IHS Markit data, some of the top advancers on Wednesday were Fox US Bidco/Robertshaw’s February 2018 covenant-lite term loan B at 81.30, up from 76, Heritage Power’s July 2019 term loan at 32.50, up from 31.01, and Isagenix’s June 2018 term loan at 41.25, up from 40.17.

Some top decliners on Wednesday were Clarion Events’ February 2018 covenant-lite term loan B2 at 75.75, down from 78.71, Lifescan’s October 2018 second-lien covenant-lite term loan at 74.33, down from 76.50, and Doncasters’ March 2020 term loan B2 at 87.83, down from 90.17.

Entain proposed terms

Moving to the primary market, Entain Holdings held its lender call on Thursday morning and announced price talk on its $750 million seven-year covenant-lite term loan B (Ba1/BB/BB+) at SOFR+10 basis points CSA plus 350 basis points to 375 bps with a 0.5% floor and an original issue discount of 97, a market source remarked.

The term loan has 101 soft call protection for one year.

Commitments are due at noon ET on Oct. 18.

Deutsche Bank Securities Inc., Lloyds, Mediobanca, NatWest and Santander are leading the deal. Wilmington Trust is the administrative agent.

Entain buying SuperSport

Entain’s term loan will be used to fund the purchase of 75% of the economic rights in SuperSport Group from EMMA Capital for €600 million in cash at completion and a further contingent payment that is expected to be €90 million made to EMMA in early 2023 based on SuperSport’s EBITDA for the financial year ending 2022.

EMMA will contribute its 25% stake in SuperSport to Entain at an initial implied valuation of €200 million, with the contingent payment implying an additional €30 million value contributed by EMMA.

Closing is expected in the fourth quarter, subject to regulatory approvals.

Entain is a Douglas, Isle of Man-based sports-betting, gaming and interactive entertainment group. SuperSport is a gaming and sportsbook operator in Croatia.

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