Thursday, Feb. 25, 2010 | 7:06 p.m.
Texas Pacific Group, one of the private equity owners of Harrah's Entertainment in Las Vegas, is accumulating debt in the Palms resort, according to a story published Wednesday by Debtwire, a publication of the Financial Times.
Citing unnamed sources, the publication said TPG had acquired a piece of the Palms' $380 million bank debt. It also said Palms' EBITDA – a commonly-used profit indicator – fell to $12 million this year amid the recession from about $70 million two years ago.
The Palms is restructuring its debt and the Maloof family, which owns the Palms, is in the process of selling its beer distribution business in New Mexico for $100 million, the publication said.
The Palms loans are privately-held but can be traded among investors.
Palms owner George Maloof declined comment on the story and declined to discuss his resort's financing other than to say the business was on solid ground.