Las Vegas Sun

November 30, 2009

Currently: 48° | Complete forecast | Log in

Company to refinance debt

Monday, May 23, 2005 | 10:47 a.m.

Harrah's Entertainment Inc. on Friday announced the sale of $750 million in 5.625 percent interest-rate notes due 2015. The notes were issued in a private placement and are not yet available for public sale. Proceeds from the offering will be used to refinance and extend maturity of outstanding debt, Harrah's said.

Rating agency Standard & Poor's Ratings Services assigned a BBB- rating to the debt issue, which constitutes an investment-grade rating. S&P also affirmed the company's BBB- long-term and A-3 short-term corporate credit ratings. The company's ratings outlook, in light of the company's pending acquisition of Caesars Entertainment Inc., remains negative.

"While the acquisition of Caesars enhances Harrah's overall business profile, its pro forma credit measures continue to remain somewhat weak for the rating," S&P Credit Analyst Michael Scerbo said. The agency expects Harrah's to restore credit measures to levels more in line with the ratings within 12 months of closing.

Harrah's has a history of financing acquisitions with a significant amount of debt and then decreasing its borrowings in a timely manner, S&P said.

archive

  • Most Read
  • Discussed
  • Most E-mailed

Complete Listing

Calendar »

  • 30 Mon
  • 1 Tue
  • 2 Wed
  • 3 Thu
  • 4 Fri

All events on Monday »