Harrah's investors tender $5 billion bonds, or 57%, in exchange offers

By Susanna Moon

Chicago, March 19 - Harrah's Entertainment, Inc. said investors had tendered $4.5 billion principal amount of old notes in exchange for new 10% second-lien senior secured notes due 2018 issued by Harrah's Operating Co., Inc.

The company said investors also tendered $416 million principal amount of old notes listed as having an acceptance priority level 2 in the separate tender offer this notes.

The preliminary results of the private exchange offers are as of 5 p.m. ET on March 18.

The company offered to exchange up to $2.8 billion principal amount of the new notes for the outstanding securities listed below:

• 5½% senior notes due 2010 with 1 priority level;

• 7 7/8% senior subordinated notes due 2010 with 1 priority level;

• 8% senior notes due 2011 with 1 priority level;

• 8 1/8% senior subordinated notes due 2011 with 1 priority level;

• 5 3/8% senior notes due 2013 with 1 priority level;

• 5 5/8% senior notes due 2015 with 2 priority level;

• 6½% senior notes due 2016 with 2 priority level;

• 5¾% senior notes due 2017 with 2 priority level;

• 10¾%/11½% senior toggle notes due 2018 with 3 priority level; and

• 10¾% senior notes due 2016 with 3 priority level.

The withdrawal deadline has been extended to 5 p.m. ET on March 23, and the early tender date has been extended to 5 p.m. ET on March 25.

The offers are not conditioned on a minimum principal amount of old notes being tendered or the issuance of a minimum principal amount of new second-lien notes.

Global Bondholder Service Corp. (866 736-2200or collect 212 925-1630) is the information agent.

Harrah's Entertainment, Inc. is a Las Vegas-based casino company.

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