Harrah's, with 20 billion in debt, offers new 720 million dollar note

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ByLoSellHi

http://www.nytimes.com/aponline/2009/09/08/business/AP-US-Harrahs-Entertainment-Finances.html


Harrah's Offers $720M in New Notes to Repay Debt

By THE ASSOCIATED PRESS
Published: September 8, 2009

Filed at 2:43 p.m. ET

LAS VEGAS (AP) -- Casino giant Harrah's Entertainment says it'll offer $720 million in new secured notes to give it more time to repay lenders.

The private Las Vegas-based company said Tuesday that it will use the proceeds from selling the new notes, which will be due 2017, to repay debt that is due much sooner.

Harrah's had $19.3 billion in long-term debt as of June 30. A Securities and Exchange Commission filing in August showed $661.2 million was due by the end of 2011.

During its second quarter, the company swapped $5.4 billion in debt for $3.6 billion in new notes due 2018.

It also paid off $1.3 billion through tender offers or open market purchases and issued $1.4 billion in new notes due 2017.
 
Quote from peilthetraveler:

Going deeper into debt to pay off debt. Sounds like a ponzi scheme to me.
More...

Just like the US Government... never really paying off the debt, just rolling it over to be paid with new debt... plus a little more, of course.
 
Quote from ByLoSellHi:
.....$720 million in new secured notes.......
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1) "Secured" by what?......the full faith and credit of the casino?
2) It will be interesting to see if they loosen or tighten their table game rules in order to increase their profitability. :cool:
 
ffs just burn the paper currency, it's not like it's actually worth anything anyway.

We could give it to homeless people to use for firewood.
 
pretty interesting phenomenon isn't it. And yet, CEOs are still paid millions of dollars even with their money losing business. As long as they can persuade "investors" to buy their debt.

seriously :D
 
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