Harrah's Entertainment Announces Proposed $500 Million Debt Offering
April 13, 2010 - Harrah's Entertainment, Inc. (“Harrah's”) announced today that Harrah's Operating Escrow LLC and Harrah's Escrow Corporation (the “Escrow Issuers”), wholly-owned unrestricted subsidiaries of Harrah's Operating Company, Inc. (“HOC”), are proposing to issue $500 million aggregate principal amount of second priority senior secured notes due 2018 (the “Notes”) in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The offer is subject to a number of conditions, including the receipt of approval from applicable gaming authorities and the expiration of the redemption period in respect of certain of HOC's existing senior notes and senior subordinated notes as described below. Upon satisfaction of certain conditions, HOC would assume the Escrow Issuers' obligations under the Notes.
Harrah's intends to use the net proceeds from this private offering to redeem its currently outstanding 5.50% Senior Notes due 2010, 8.0% Senior Notes due 2011 and 8.125% Senior Subordinated Notes due 2011, as well as for other general corporate purposes, including repaying revolving loans outstanding under its senior secured credit facilities.
The Notes are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act, and outside the United States, only to non-U.S. investors pursuant to Regulation S. The Notes will not be initially registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements or a transaction not subject to the registration requirements of the Securities Act or any state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful.
About Harrah's Entertainment
Harrah's Entertainment, Inc. is the world's largest provider of branded casino entertainment. Since its beginning in Reno, Nevada, more than 70 years ago, Harrah's has grown through development of new properties, expansions and acquisitions, and now operates casinos on four continents. The company's properties operate primarily under the Harrah's?, Caesars? and Horseshoe? brand names; Harrah's also owns the London Clubs International family of casinos and the World Series of Poker?. Harrah's Entertainment is focused on building loyalty and value with its customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.
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