Thursday, April 9, 2009 | 8:44 a.m.
Harrah's Entertainment Inc. of Las Vegas today disclosed the results of its latest effort to reduce its debt load and annual interest costs.
The company said a debt-exchange offer that expired Wednesday resulted in it accepting exchange notes with a principal amount of $5.55 billion, which it will exchange for $3.4 billion in new 10 percent notes due 2018 and about $102 million in cash.
The new debt has a longer maturity period and, in some cases, a higher interest rate.
The company also replaced $442 million in bridge loans with the new 2018 notes valued at $297 million.
Harrah's didn't say how much the exchanges will reduce its annual interest costs, which analysts have said are too high as the recession reduces cash flow at its 53 casinos and its resorts around the world.
The company reported total debt of $24.5 billion as of Dec. 31 and said it paid $1.7 billion in interest and other debt expenses last year.
Just as distinctive as it's famous neighbors Caesar's Palace and The Venetian, Harrah's Las Vegas has been entertaining guests since 1973. The 87,700-square foot casino is filled with 1,520 slot machines and 107 gaming tables. Outside the casino, guests are able to experience fun in a street-fair atmosphere at the Carnival Court, an outdoor lounge with live entertainment (including the bartenders), food stands and outdoor shops.
At Harrah's comedy is King, and that has never been more apparent then the comedy acts of Rita Rudner, the Mac King Comedy Magic Show and the Improv Comedy Club. After the show, guests are more than welcome to laugh at their friends at The Piano Bar, famous for its dueling pianos and karaoke. Most recently, Harrah's added tribute show "Legends in Concert" to its list of entertainment.
Restaurants like Ming's offers Asian cuisine, while Ruth's Chris Steak House offers guests fine steaks and fresh seafood. Toby Keith's I Love This Bar is a country-themed bar with a restaurant, live music and the occasional appearance from Keith himself.
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