Harrah's spends $53.3 million to buy back $66.1 million of 5½%, 7 7/8%, 8 1/8% notes

By Angela McDaniels

Tacoma, Wash., Nov. 12 - Harrah's Entertainment, Inc. had repurchased $66.1 million of its notes as of Sept. 30 under an $80 million authorization granted by the board of directors to retire outstanding debt.

Specifically, the company retired $32.3 million of its 5½% senior notes due 2010, $12.1 million of its 7 7/8% senior subordinated notes due 2010 and $21.7 million of its 8 1/8% senior subordinated notes due 2011.

The notes were retired for a total of $53.3 million, according to Harrah's 10-Q report for the third quarter filed with the Securities and Exchange Commission.

Gains totaling $7.4 million were recorded in the third quarter, representing discounts associated with the early retirement of the debt.

The board granted the $80 million authorization in August. Harrah's said these repurchases will be funded through available cash from operations and borrowings from its established debt programs.

The Las Vegas-based casino company may continue to retire or purchase its debt from time to time through cash purchases or exchanges in open-market purchases or privately negotiated transactions, the filing stated.

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