Facebook
Fark
Digg
Reddit
StumbleHarrah’s to use new offering to pay down debt
Tuesday, Sept. 8, 2009 | 9:04 a.m.
Harrah's Entertainment announced today it plans to offer $720 million in a private offering of new eight-year notes as the gaming company looks to decrease its debt load.
The company said it will use the proceeds to repay a portion of its revolving credit borrowings.
In second-quarter earnings announced earlier this year, Harrah's said its Las Vegas revenue fell 19.2 percent compared to the second quarter of 2008, from $873.1 million to $705.2 million. That contributed to an overall 12.7 percent decline in quarterly revenue for the world's largest casino operator, from $2.602 billion in 2008's second quarter to $2.271 billion in the 2009 second quarter.
Hurt by the recession, its operating profit worldwide fell from $469.8 million in the 2008 quarter to $416.7 million in the 2009 quarter.
Discussion: comments so far…
Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
No trusted comments have been posted.
Post a comment
Most Popular
- Viewed
- Discussed
- E-mailed
Everything Under the Sun
Blogs
The Kats Report
Las Vegas Philharmonic says search for new music director to begin 'immediately' (1 Comment)
With Shenandoah project stalled, Wayne Newton hits back legally (7 Comments)
Where does a Playmate play when she turns 21? Vegas! (3 Comments)
Ice Ice Billy
The road to six-toed cats and Mayor Bubba
The Kats Report
David Itkin tells L.V. Philharmonic officials he's on his way out (14 Comments)
Diamond Dave sells it well as Van Halen pours out the power at MGM Grand (2 Comments)
Entering debut at Tryst, Nick Hissom is a model for a rapid rise to prominence (3 Comments)
- Locally owned and independent since 1950; Winner of the Pulitzer Prize for Public Service, best news website in the nation & DuPont Award for broadcast journalism
They've reduced the odds on blackjack, they're not properly maintaining their properties, they are short on staff in many key areas. They are one of the two monopolies on the strip who have made it clear to customers that competition is being eliminated and now they want to sell eight-year notes in a private offering. Robbing from Peter to pay Paul for a product in decline....
i'll b glad when they sell and get out of the business.they're dreadfull and have been a big part of the strips' demise.good riddance evil nazi empire.
Anybody buying this new offering is looking for trouble. I would not give them anything! let them sell it to their top execs!
I never liked Caesar's Palace. This place turned out to be sooo big that it's hard to find the exit. Things got out of control and then, to top this craze, they added a tower that they don't even need. It's finished and cost quite some money but it's not even in operation. How crazy can you be to do that? The company I work for had plans to increase its gaming floor but put all construction on halt when this crisis started. Without making new debt to pay back a little less of the old debt and pay the CEO with the balance.
I refuse to play at Caeasars, and also never play at Harrah's. Harrah's is just fine enough to walk through on my way to the Mirage when it's too hot outside. This way you get some cold air for free. At least a little freebie of that tight company. I would not waste a penny to gamble there. Even the Casear's poker room is a bit too arrogant from my point of view. I prefer the Venetian that at least gives me a full dose of air perfume when I walk in. After 2 hours or so I am guaranteed to leave because headache caused by this air perfume gets to heavy that I can't take it any longer. This will reduce my gambling activities. Thank you.
From Switzerland
Another example of mismanagement by the cronies, here comes another round of lay offs coupled with cuts in services and benefits.
in the end, Harrah's will owe about 50 billion to the creditors that will get nothing in return. The company will then go under chapter 11 and some smart guy will get the property for 20 cents on the dollar, value wise. And this way they will skip 80 per cent of the debt and the entire circle can start all over gain. I will not sign for new notes of this company. no matter how big the interest promisses are.