Harrah’s owners expand offer to buy back bonds

The owners of Harrah's Entertainment have expanded their cash offer to buy back $946 million in bonds to include the new 10 percent notes due 2018 that were issued Wednesday.

Affiliates of Apollo Management and TPG Capital first announced the buy back offer March 5, but expanded the offer late Wednesday to include some of the new notes issued after a debt swap was completed by Harrah's Entertainment Wednesday.

The owners also extended the early tender date and withdrawal deadline until April 29, with the expiration date for the offers moved to May 13.

Bond holders who tender their notes by the early deadline will receive 37 cents on the dollar, while investors will receive 34 cents on the dollar after April 29.

Bloomberg News reported in mid-March that the owners were buying part of the company's debt to help ensure they remain in control of Harrah's Entertainment should the company be forced into bankruptcy.