Caesars wins approval to pay down $103.5 million of first-lien notes

By Caroline Salls

Pittsburgh, Nov. 15 – Caesars Entertainment Operating Co. Ltd. obtained permission from the U.S. Bankruptcy Court for the Northern District of Illinois to pay down $103.5 million principal amount of its first-lien notes, according to an order filed Tuesday.

The payment was included in the bond restructuring support agreement between the company and its major creditors announced on Oct. 5.

Because the first-lien noteholders are oversecured, the company said it will repay the amount eventually. The $103.5 million payment will be deducted from the amount owed to holders of the first-lien notes and, by reducing the principal early, will cut the interest that has accrued on the debt.

“The debtors believe that the proposed payment of less than 2% of the principal amount owed under the first-lien notes indentures is reasonable in light of the continued delay in a plan distribution to the first-lien noteholders on account of their senior secured claims,” the motion said. “Such creditors have supported the debtors’ plan structure since before the commencement of these cases, and therefore have sought certainty on timing of payment on their claims.”

The court previously approved a $300 million principal repayment to first-lien bank lenders in June.

Caesars is a Las Vegas-based casino-entertainment company that filed for bankruptcy on Jan. 15, 2015. The Chapter 11 case number is 15-01145.

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