Harrah's Operating starts tender offers for four series of notes

By Angela McDaniels

Tacoma, Wash., Sept. 22 - Harrah's Operating Co. Inc. has begun 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 are subject to a maximum total purchase price of $175 million, according to a company news release. If $175 million is not enough to purchase the principal amount of notes tendered, notes will be accepted on a pro rata basis.

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

The offers will expire at midnight ET on Oct. 21.

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

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

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

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

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