Harrah's Casinos Featuring New Private Offering

Harrah's Entertainment, the operator of casinos and gambling venues across the world, is putting forth a brand new private offering which the corporate hopes will cover a payment on a maturing loan due just over a year away.

Haarah's Entertainment, the world's largest casino operator, is extending a personal offering that the corporate hopes generates it $720 million to repay debt that may be soon to mature. The brand new loans wouldn't be due until 2017.

Harrah's faces up to $19 billion in debt. Consistent with 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 general public market meant the absorption of a substantial amount of debt, only to seek out gambling revenues rapidly decreasing.

Many other gambling operators has been pushed to or over the brink of bankruptcy. MGM Mirage and Las Vegas Sands had investors wondering if either or both will not be in a position to survive this past spring, and Trump Entertainment and Station Casinos begin the lengthy list of gaming bankruptcies.

Published on September 8, 2009 by A.J.Maldonado

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