Deadline extended to trade Harrah’s notes

Thursday, April 16, 2009 | 4:01 p.m.

Analysts: Harrah’s plan might not stave off bankruptcy (4-13-09)
Harrah’s releases debt-exchange offer results (4-9-09)

Headlines from the Vegas gaming industry

The private equity investors that control Harrah's Entertainment Inc. of Las Vegas said Wednesday they've extended the deadline for certain bondholders to swap their notes for cash under a $350 million offer announced last month.

Apollo Global Management and Texas Pacific Group's TPG Capital, along with other unidentified co-investors, said the new early tender deadline was moved from April 17 to April 29 for investors who want to receive $370 in cash for certain notes with a face value of $1,000. Investors missing that deadline may receive $340 per $1,000 in debt through May 13, revised from May 1. If too much debt is offered for trade, the investors have spelled out a priority for the order in which various debt issuances will be accepted.

No reason was given for the extension and a spokeswoman declined comment. Such debt deals typically are extended when it appears not enough bondholders will participate by the initial deadline.

The investors have offered to pay up to $350 million in cash for notes with a face amount of up to $946 million. They are buying the debt at distressed prices in a move several analysts have said appears aimed at keeping them in control of Harrah's should it seek bankruptcy protection because of its hefty debt load.

Discussion: 1 comment so far…

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By neiman1

April 16, 2009

8:04 p.m.

Suggest removal

Just like wall street. Games instead of creating value. The ultimate gamble, the corporate board rooms. The final losers, everyone that works there or live in this town.