Caesars Entertainment experienced a significant boost in its share price after obtaining a substantial $3 billion senior secured credit line.
The entertainment conglomerate revealed a fresh financing arrangement amounting to $3 billion, comprising a $750 million senior secured term loan and a considerable $2.25 billion in supplementary senior secured revolving credit. This newly established credit facility not only reinforces the company’s current credit availability but also prolongs its maturity date.
Brett Yunker, the Chief Financial Officer of Caesars, conveyed his excitement regarding the updated financing, recognizing the vital backing from 16 banking associates both domestically and internationally. He emphasized that this refinancing agreement will result in diminished interest expenditures and furnish a more extended timeframe for debt settlement.
This strategic maneuver empowers Caesars to entirely settle the outstanding balance under Caesars Resort Collection, LLC’s (CRC) revolving credit facility. Furthermore, the allocated funds will be utilized to discharge CRC’s existing $750 million Term Loan B, which was scheduled to reach maturity in December 2024.
Following the announcement on October 7th, Caesars’ stock has exhibited an upward trend, consistently trading at a higher valuation compared to the beginning of the week.
This favorable progression follows Caesars’ disclosure of a 10.6% surge in its second-quarter earnings, primarily attributed to the robust performance of its Las Vegas ventures.
Throughout the second quarter of 2022, Caesars generated $2.8 billion in aggregate revenue. Notably, its Las Vegas operations attained an unprecedented $5.47 billion in EBITDA, representing a substantial 29% growth compared to $4.23 billion in 2021.
Caesars Entertainment experienced an exceptional fiscal period in Las Vegas, achieving unprecedented earnings before interest, taxes, depreciation, and amortization (EBITDA). Their localized markets also demonstrated robust results, leading to record-breaking EBITDA for their physical casino locations. This positive trend is evident in their second-quarter financial report, as stated by CEO Tom Reeg.
Reeg further noted that their online platform has seen substantial enhancement since the previous quarter, and they maintain a very hopeful outlook on its projected path for the remainder of the year.
