Wednesday, May 27, 2009 | 8:29 a.m.
Harrah's Entertainment Inc. has announced plans to issue $1 billion in new debt.
In a statement dated Tuesday, the gaming operator said subsidiaries Harrah’s Operating Escrow LLC and Harrah's Escrow Corp. would issue $1 billion of senior secured notes due 2017 in a private offering that is exempt from federal securities registration requirements.
Harrah’s intends to use a portion of the cash raised in the offering to retire a portion of Harrah’s existing debt and for general corporate purposes.
Because of uncertainties about its financial performance, Harrah's debt has been trading at a discount. The company has taken advantage of this by swapping old debt for new debt and cash, overall reducing its debt burden and annual interest expenses.
During the first quarter, Harrah's completed debt exchanges that reduced debt by $1.8 billion and annual interest expenses by $73 million at Harrah's Operating Co.; and overall for Harrah's Entertainment that cut debt by $2.3 billion and reduced yearly interest costs by $104 million.
Previously, the Las Vegas company for the first quarter of 2009 reported that revenue fell 13.3 percent from the 2008 quarter to $2.254 billion. The company's loss from continuing operations narrowed, from $275 million in the 2008 quarter to $127.4 million in the 2009 quarter.
Just as distinctive as it's famous neighbors Caesar's Palace and The Venetian, Harrah's Las Vegas has been entertaining guests since 1973. The 87,700-square foot casino is filled with 1,520 slot machines and 107 gaming tables. Outside the casino, guests are able to experience fun in a street-fair atmosphere at the Carnival Court, an outdoor lounge with live entertainment (including the bartenders), food stands and outdoor shops.
At Harrah's comedy is King, and that has never been more apparent then the comedy acts of Rita Rudner, the Mac King Comedy Magic Show and the Improv Comedy Club. After the show, guests are more than welcome to laugh at their friends at The Piano Bar, famous for its dueling pianos and karaoke. Most recently, Harrah's added tribute show "Legends in Concert" to its list of entertainment.
Restaurants like Ming's offers Asian cuisine, while Ruth's Chris Steak House offers guests fine steaks and fresh seafood. Toby Keith's I Love This Bar is a country-themed bar with a restaurant, live music and the occasional appearance from Keith himself.