Las Vegas Sun

September 26, 2017

Currently: 61° — Complete forecast

Harrah’s to issue $1 billion in debt in private offering

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.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy