Harrah's Entertainment buying back loans for $250M

Oct 30, 2009 10:27 PM
Staff & Wire Reports |

Casino operator Harrah's Entertainment Inc. (HET) says it has agreed to pay $250 million to buy back some commercial loans at a fraction of their face value.

The Las Vegas-based company said in a federal Securities and Exchange Commission filing Friday that it agreed to the loan buyback last week.

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Harrah's says it'll pay between 25 cents and 30 cents per $1 in principal, and will cancel the loans it buys.

The company reported this week it lost $1.6 billion in the third quarter as patrons gambled less and the value of its assets fell.

The privately held company runs more than 50 casinos worldwide. It said it had $19.3 billion in debt as of June 30.

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