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Caesars Entertainment Operating Company RSA Filed

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According to the U.S. Bankruptcy Court docket, Caesars Entertainment Operating Company filed a third amended and restated motion to authorize the Debtors’ assumption of a restructuring support agreement (RSA). According to documents filed with the Court, “As of today, the RSA is supported by approximately one-third of the Debtors’ $18.4 billion capital structure and contemplates a par recovery for holders of approximately $5 billion of the Debtors’ First Lien Bank Debt, a consensually negotiated recovery to holders of approximately $6 billion of First Lien Bond Debt, and meaningful recoveries to holders of junior debt.”

The motion continues, “Assumption of the RSA will secure these substantial commitments, which are necessary to any proposed reorganization that maintains the valuable inter-connectedness of the Caesars’ branded properties and the synergies generated through the Debtors’ Total Rewards program. Among other things, CEC will: purchase up to 100 percent of the equity in OpCo for $700 million in cash from electing First Lien Noteholders; purchase up to 15 percent of the equity in PropCo for $269 million in cash from electing First Lien Noteholders; contribute $406 million in cash to fund recoveries provided under the Plan and a forbearance fee payable to certain First Lien Noteholders; provide a standby commitment of $75 million, which can be drawn by CEOC to fund distributions required under the Plan in the event of a shortfall of sources and uses to fund the reorganized capital structure upon consummation of the Plan; and guaranty OpCo’s obligations under its go-forward lease with PropCo – a 15-year lease requiring up to $635 million in rent per year.” Read more about the CEOC restructuring.