Hedge fund agrees to buy Harrah's shares for debt

  • Discuss Comment, Blog about
  • Print Friendly and PDF

LAS VEGAS (AP) - New York-based hedge fund Paulson. & Co. Inc. has agreed to exchange $710 million in debt from Harrah's Entertainment Inc. for 9.9 percent stake in the private casino operator.

The Las Vegas-based casino company said Thursday that the exchange was part of a $1.12 billion transaction that also gives an additional 5.7 percent stake in Harrah's to Apollo Global Management LLC and TPG Capital, LP.

Apollo and TPG took Harrah's private in January 2008.

Harrah's says Paulson, Apollo and TPG agreed to buy $835 million worth of notes due from 2015 to 2017 for $557 million as part of the exchange.

Harrah's said the company anticipates the deal to close during the fourth quarter or in the first quarter next year.

Comments

Use the comment form below to begin a discussion about this content.

Sign in to comment