Harrah's Casinos Featuring New Private Offering
Haarah's Entertainment, the world's largest casino operator, is extending a private offering that the company hopes generates it $720 million to repay debt that is soon to mature. The new loans would not be due until 2017.
Harrah's faces as much as $19 billion in debt. According to filings with the Securities and Exchange Commission, a payment of $661 million is due in 2011.
Earlier this year, Harrah's exchanged $5.4 billion in maturing debt for $3.6 billion in notes not due until 2018, after making concessions on rates and upfront payment to lenders.
Harrah's took itself private only months before the onset of the recession. The switch off the public market meant the absorption of a great deal of debt, only to find gambling revenues rapidly decreasing.
Many other gambling operators have been pushed to or over the edge of bankruptcy. MGM Mirage and Las Vegas Sands had investors wondering if either or both might not be able to survive this past spring, and Trump Entertainment and Station Casinos begin the lengthy list of gaming bankruptcies.
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