Casino News

Harrah's Entertainment to issue $1bn debt

2009-05-28 16:33:02

Harrah's Entertainment has announced that it will be issuing $1 billion (£626 million) in new debt in a private offering.

Its subsidiary companies Harrah's Operating Escrow and Harrah's Escrow will issue the senior secured notes, which are due in 2017.

The firm's debt has been trading at a discounted price recently because of the company's questionable financial performance.

Despite this, Harrah's plans to use some of the cash to retire some of its existing debt.

A portion of the money will also be put towards other more general corporate expenses.

In the first quarter of this year, Harrah's completed debt exchanges that reduced the amount it owed by $2.3 billion and annual interest expenses by $104 million.

Harrah's currently owns the World Series of Poker brand, which could prove to be a lucrative asset if the firm decided to sell.

According to Your-Story.org, the company might be forced to sell sooner than it wants to if it plans to avoid bankruptcy.