Las Vegas Sun

March 29, 2024

Harrah’s releases debt-exchange offer results

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.

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