Caesars Entertainment Operating Company (CEOC) announced that the Company has obtained committed financing for $2.2 billion of proceeds to finance the fee and leasehold interests in Caesars Palace Las Vegas: a 3,974 room full-service luxury resort and casino located on 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 Reorganization Plan. 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, Barclays, Goldman Sachs Mortgage Company and Morgan Stanley Bank have committed to provide the mortgage loan and certain other lenders have committed to provide the mezzanine loans.
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