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Caesars Entertainment Operating Co. Updates Financing as Part of Plans for Emergence

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Caesars Entertainment Operating Co. Inc. and its Chapter 11 debtor subsidiaries revealed that they have obtained committed financing for $2.2 billion of proceeds to finance the fee and leasehold interests in Caesars Palace Las Vegas, an iconic, world class, 3,974 room full-service luxury resort and casino located in the heart of the Las Vegas Strip.

The proceeds from this new-money financing for the to-be-formed REIT will be used to repay CEOC’s existing indebtedness in accordance with the terms of CEOC’s plan of reorganization. The financing is comprised of a $1.55 billion mortgage loan, a $200 million senior mezzanine loan, a $200 million intermediate mezzanine loan, and a $250 million junior mezzanine loan.

JPMorgan Chase Bank, National Association, Barclays PLC, Goldman Sachs Mortgage Co., and Morgan Stanley Bank, N.A. have committed to provide the mortgage loan and certain other lenders have committed to provide the mezzanine loans.