HARRAH'S FLOATS $500M. IN BONDS

June 08, 2001 7:38 PM
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Harrah's Entertainment has announced the sale of $500 million in six-year corporate bonds.

The debt will be used to assist the company in its recently announced acquisition of Harveys Casino Resorts for $625 million, the company told The Wall Street Journal.

The bonds will have a coupon rate of 7.125 percent and a yield-to-maturity of 7.125 percent, the company said.

Moody's is expected to rate the bonds a Baa3 and Standard & Poor's a BBB-, Harrah's said.

In other news, Harrah's announced it signed a seven-year energy management contract with Enron Corp.

Harrah's said the deal is expected to cut the company's energy costs by $2.6 million year and add about 1 cent to the company's bottom line.