UPDATE 1-Harrah's expects buyout to close on Jan 28

(Adds background about planned loan sale)

NEW YORK, Jan 14 (Reuters) - Harrah's Entertainment Inc HET.N said on Monday it expects its acquisition by private equity firms Apollo Global Management LLC and TPG Capital LP [TPG.UL] to close on Jan. 28.

Harrah's, the world's biggest casino operator, agreed to the $17.3 billion buyout in December 2006 and previously said it expected the deal, which will pay shareholders $90 a share, to close in early 2008.

Harrah's is expected on Tuesday to begin selling a $9 billion bank loan, backing the planned buyout, sources told Reuters Loan Pricing Corp last week.

The loan sale comes as bankers try to clear a $150 billion leveraged loan pipeline and marks a test of investor appetite for takeover-related debt.

Harrah's buyout is backed by about $6.1 billion in equity, with the rest debt financed, according to a regulatory filing. (Reporting by Chris Reiter; Editing by Steve Orlofsky)