Harrah's offers $2.8 billion bond swap

5 Mar 2009

LAS VEGAS, Nevada -- As reported by Bloomberg: "Harrah's Entertainment Inc., the world's biggest casino company, offered to swap $2.8 billion in bonds for new notes to reduce debt and extend maturities as it fights to stave off a default while gambling revenue tumbles.

"The debt exchange, coming 14 months after Harrah's was taken private by Leon Black's Apollo Management LP and TPG Inc. for $30.7 billion, offers 10 percent second-priority senior secured notes due in 2018 for some existing bonds that mature sooner, the Las Vegas-based company said today in an e-mail.

"Amid near-frozen credit markets, the Harrah's offer is designed to lessen the burden of repaying or refinancing loans coming due in the near term. Bonds due in 2010, 2011 and 2013 have the highest acceptance priority. Apollo and TPG assumed $13.4 billion in existing debt and transaction costs in the January 2008 acquisition.

"Near-maturity bonds of Harrah's operating company that have the highest priority include 5.5 percent senior notes and 7.875 percent senior subordinated notes due 2010..."

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	Harrah's offers $2.8 billion bond swap 5 Mar 2009 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> LAS VEGAS, Nevada -- As reported by Bloomberg: "Harrah's Entertainment Inc., the world's biggest casino company, offered to swap $2.8 billion in bonds for new notes to reduce debt and extend maturities as it fights to stave off a default while gambling revenue tumbles. "The debt exchange, coming 14 months after Harrah's was taken private by Leon Black's Apollo Management LP and TPG Inc. for $30.7 billion, offers 10 percent second-priority senior secured notes due in 2018 for some existing bonds that mature sooner, the Las Vegas-based company said today in an e-mail. "Amid near-frozen credit markets, the Harrah's offer is designed to lessen the burden of repaying or refinancing loans coming due in the near term. Bonds due in 2010, 2011 and 2013 have the highest acceptance priority. Apollo and TPG assumed $13.4 billion in existing debt and transaction costs in the January 2008 acquisition. "Near-maturity bonds of Harrah's operating company that have the highest priority include 5.5 percent senior notes and 7.875 percent senior subordinated notes due 2010..."