Harrah's extends date to swap debt, eliminates cap

Mar 27, 2009 1:13 AM
Staff & Wire Reports |

Privately held casino operator Harrah's Entertainment Inc. says it has extended the deadline and eliminated a cap on its latest offer designed to lower its debt and give the company more time to pay back lenders.

The Las Vegas-based company said Thursday that it has tendered about $5.4 billion in old bonds with the offer so far, about 63 percent of its eligible debt.

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The swap includes giving bondholders new notes due in 2018 with higher interest rates that are worth less than the original notes.

The company says it is no longer limiting the amount of new notes it will exchange for its debt, which was previously capped at $2.8 billion.

The new deadline for the offering is April 8. Harrah's says it had $23 billion in long term debt at the end of 2008.