Harrah's completes $1.6 bil. transaction

Harrah's Entertainment Inc. said it completed a $1.6 billion senior unsecured bank credit financing comprised of a $1.3 billion five-year revolving credit facility and a $300 million, 364-day revolving credit facility.

Proceeds were used to refinance existing indebtedness of Harrah's and its Rio hotel-casino subsidiary, Harrah's said. Funds will also be available for working capital, future acquisitions and general corporate purposes.

"When combined with recent public debt offerings, we have completely refinanced our company, extending maturities at attractive rates," said Harrah's Chief Financial Officer Colin Reed. "All major maturities are now at least five years out, and we have significant financial flexibility for the future."

Harrah's operates 18 casinos in the United States under the Harrah's, Showboat and Rio brand names; and the Star City casino in Sydney, Australia.

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