Harrah's Operating buys $45.56 million of notes in tender offers

By Jennifer Chiou

New York, Oct. 22 - Harrah's Entertainment, Inc. announced the wrap of Harrah's Operating Co. Inc.'s tender offers for its 5½% senior notes due 2010, 7 7/8% senior subordinated notes due 2010, 8% senior notes due 2011 and 8 1/8% senior subordinated notes due 2011.

The offers expired at midnight ET on Oct. 21.

Harrah's said it accepted tenders from holders of $4,538,000 of its $228,578,000 of 5½% notes, $17,219,000 of its $161,999,000 of 7 7/8% notes, $19,638,000 of its $32,826,000 of 8% notes and $4,166,000 of its $16,146,000 of 8 1/8% notes.

The offers were subject to a maximum total purchase price of $160 million, down previously from $175 million. If $160 million had not been enough to purchase the principal amount of notes tendered, notes would have been accepted on a pro rata basis.

For each $1,000 principal amount of notes, Harrah's paid $980.00 for the 5½% notes, $997.50 for the 7 7/8% notes, $960.00 for the 8% notes and $955.00 for the 8 1/8% notes.

Harrah's Operating was seeking $1 billion, increased from the previously planned $750 million, of new term loans under its senior secured credit facility. It planned to use the proceeds to fund the tender offers, refinance or retire existing debt and provide additional liquidity.

The offers were conditioned on the successful receipt of these new term loans. They were not conditioned on a minimum principal amount of notes being tendered.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) was the dealer manager. Global Bondholder Services Corp. (866 736-2200 or 212 925-1630) was the information agent.

Harrah's Operating is a subsidiary of Harrah's Entertainment, a Las Vegas-based provider of branded casino entertainment.

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