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The private equity investors that control Harrah's Entertainment Inc. of Las Vegas said Wednesday they've extended the deadline for certain bondholders to swap their notes for cash under a $350 million offer announced last month.
Apollo Global Management and Texas Pacific Group's TPG Capital, along with other unidentified co-investors, said the new early tender deadline was moved from April 17 to April 29 for investors who want to receive $370 in cash for certain notes with a face value of $1,000. Investors missing that deadline may receive $340 per $1,000 in debt through May 13, revised from May 1. If too much debt is offered for trade, the investors have spelled out a priority for the order in which various debt issuances will be accepted.
No reason was given for the extension and a spokeswoman declined comment. Such debt deals typically are extended when it appears not enough bondholders will participate by the initial deadline.
The investors have offered to pay up to $350 million in cash for notes with a face amount of up to $946 million. They are buying the debt at distressed prices in a move several analysts have said appears aimed at keeping them in control of Harrah's should it seek bankruptcy protection because of its hefty debt load.
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