Investors start $250 mln offer for Harrah's debt
NEW YORK, March 4 (Reuters) - Investors including affiliates of private equity firms Apollo Global Management and TPG Capital said on Wednesday they were starting a $250 million cash tender offer for debt issued by Harrah's Operating Company.
Hamlet Tender LLC and Hamlet FW LLC said they were joining with the private equity affiliates and other investors on offer for outstanding 10 percent second-priority senior secured notes due 2015 and 10 percent second priority senior secured notes due 2018.
They were offering to buy the debt at a price of $370 per $1,000 principal amount of notes tendered and accepted by April 17 and a purchase price of $340 per $1,000 principal amount on notes tendered later than the expiry date.
Moody's Investors Service on Wednesday cut its ratings on Harrah's Entertainment Inc [HAMLEH.UL] to a deeply speculative grade, citing concerns the casino operator would default on its debt as gaming revenues decline.
Affiliates Apollo and TPG acquired Harrah's Entertainment through a $31 billion leveraged buy-out in early 2008. (Reporting by Sinead Carew; Editing by Anshuman Daga)
