2 unchanged sentences
We are exposed to changes in interest rates primarily from variable rate long-term debt arrangements.
−Removed: Our exposure to foreign exchange risk is attributable to funds held in operating and escrow accounts, as well as the previously announced sales price of William Hill International, which are denominated in British Pounds (GBP).
Interest Rate Risk
1 unchanged sentence
No amounts were outstanding under our revolving credit facilities.
−Removed: As a result of the Merger, we assumed Former Caesars’ interest rate swaps, of which four interest rate swap agreements are currently in place to fix the interest rate on $1.3 billion of variable rate debt.
−Removed: As a result, net of these interest rate swaps, $5.3 billion of debt remains subject to variable interest rates, as of December 31, 2021, for the term of the agreements.
−Removed: See Note 12 for additional information.
−Removed: The difference to be paid or received under the terms of the interest rate swap agreements is accrued as interest rates change and recognized as an adjustment to interest expense as settlements occur.
−Removed: Changes in the variable interest rates to be received pursuant to the terms of the interest rate swap agreements will have a corresponding effect on future cash flows.
+Added: As a result of the Merger, we assumed interest rate swaps to manage the mix of debt between fixed and variable rate instruments.
+Added: During the year ended December 31, 2022, we had four interest rate swap agreements to fix the interest rate on $1.3 billion of variable rate debt related to the CRC Credit Agreement.
+Added: The interest rate swaps were designated as cash flow hedging instruments.
+Added: The difference to be paid or received under the terms of the interest rate swap agreements was accrued as interest rates changed and recognized as an adjustment to interest expense at settlement.
+Added: The term of the interest rate swaps ended on December 31, 2022.
We do not purchase or hold any derivative financial instruments for trading purposes.
−Removed: The table below provides information as of December 31, 2021 about our financial instruments that are sensitive to changes in interest rates including the cash flows associated with amortization, the notional amounts of interest rate derivative instruments, and related weighted average interest rates.
−Removed: Principal amounts are used to calculate the payments to be exchanged under the related agreements and weighted average variable rates are based on implied forward rates in the yield curve as of December 31, 2021 and should not be considered a predictor of actual future interest rates.
+Added: The table below provides information as of December 31, 2022 about our fixed rate and variable rate financial instruments that are sensitive to changes in interest rates, including the cash flows associated with amortization and average interest rates.
+Added: Principal amounts are used to calculate the payments to be exchanged under the related agreements and average variable rates are based on implied forward rates in the yield curve as of December 31, 2022 and should not be considered a predictor of actual future interest rates.
Expected Maturity Date
−Removed: (Dollars in millions) 2022 2023 2024 2025 2026 Thereafter Total Fair Value
+Added: (Dollars in millions) 2023 2024 (a)
+Added: 2026 2027 Thereafter Total Fair Value
Long-term debt
3 unchanged sentences
Average interest rate 7.1 % 7.2 % 7.8 % 6.7 % 6.7 % 6.7 % 7.3 %
−Removed: Interest Rate Derivatives
−Removed: Interest rate swaps
−Removed: Variable to fixed (a)
____________________
−Removed: Average pay rate 2.7 % — % — % — % — % — % 2.7 %
−Removed: Average receive rate 0.5 % — % — % — % — % — % 0.5 %
−Removed: ____________________
−Removed: (a) These amounts represent the interest rate swap notional amounts that mature at the end of 2022.
−Removed: See Note 12 for additional information.
+Added: (a) Maturities of $3.4 billion in 2024 and $1.0 billion in 2025 of variable rate debt were repaid with the net proceeds of the $2.5 billion CEI Term Loan B and the $2.0 billion CEI Senior Secured Notes due 2030.
As of December 31, 2022, borrowings outstanding under our credit facilities were variable-rate borrowings.
−Removed: Assuming a 100 basis-point increase in LIBOR, our annual interest cost would change by $53 million based on gross amounts outstanding at December 31, 2021.
−Removed: LIBOR is expected to be discontinued by lending institutions after December 31, 2021 for new debt agreements and after June 30, 2023 no additional LIBOR rates will be available.
−Removed: We have variable rate debt instruments which are subject to LIBOR interest rates plus a margin or base rate.
−Removed: Our CRC Credit Facility contains alternative rates in the event that LIBOR is no longer available.
−Removed: The Baltimore Term Loan has been amended and we intend to work with our lenders to ensure any transition away from LIBOR will have minimal impact on our financial condition, but can provide no assurances regarding the impact of the discontinuation of LIBOR.
−Removed: Our interest rate swaps mature on December 31, 2022.
+Added: Assuming a 100 basis-point increase in LIBOR and Term SOFR, our annual interest cost would change by $54 million based on gross amounts outstanding at December 31, 2022.
+Added: LIBOR was discontinued by lending institutions for new debt agreements and after June 30, 2023 no additional LIBOR rates are expected to be available.
+Added: We have variable rate debt instruments which are subject to LIBOR and Term SOFR interest rates plus a reasonable margin.
+Added: Our CRC Term Loan and CRC Incremental Term loan are LIBOR based loans as of December 31, 2022.
+Added: As previously described, subsequent to December 31, 2022 we repaid both our CRC Term Loan and CRC Incremental Term Loan and our interest rate swaps matured on December 31, 2022.
Foreign Exchange Rate Risks
−Removed: T he Company has entered into several foreign exchange forward contracts with third parties to hedge the risk of fluctuations in the foreign exchange rates between USD and GBP and to fix the exchange rate for a portion of the funds used in the William Hill Acquisition, repayment of related debt, and expected proceeds of the sale of the international operations.
−Removed: The Company entered into a foreign exchange forward contract to purchase £724 million at a contracted exchange rate, which was settled on June 11, 2021 and December 31, 2021 .
−Removed: As of December 31, 2021, the Company is contracted to sell a total of £790 million at fixed exchange rates.
−Removed: These contracts are to hedge the risk of fluctuations in the foreign exchange rate related to a portion of the expected proceeds from the sale of William Hill International.
−Removed: The forward term of these contracts ends in March 2022.
+Added: We entered into several foreign exchange forward contracts with third parties to hedge the risk of fluctuations in the foreign exchange rates between USD and GBP.
+Added: During the years ended December 31, 2022 and 2021, we recorded a gain of $73 million and $23 million, respectively , related to forward contracts, which was recorded in the Other income (loss) on the Statements of Operations.
+Added: All forward contracts have been settled as of July 1, 2022.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.