Privately held casino operator Harrah's wants to exchange an unspecified amount of debt for up to $2.8 billion worth of new notes in order to lower its debt obligations and have more time to pay back lenders.
The Las Vegas-based company said late Wednesday it wants to swap notes coming due as early as next year for new notes due in 2018. The new notes would carry higher interest rates at 10 percent, but would be worth far less than the original notes.
Investors who agree by March 18 to substitute $1,000 of old notes would get $30 in new notes.
Harrah's Entertainment Inc. has struggled with financing since last year when the casino industry started seeing big cutbacks in consumer spending. Harrah's said in November it had more than $24 billion in debt at the end of the third quarter.