arrah's said it accepted exchange notes with a principal amount of us$ 5.55 billion, which it will exchange for us$ 3.4 billion in new 10 % notes due 2018 and about us$ 102 million in cash.
The new debt has a longer maturity and, in some cases, a higher interest rate. The company also replaced us$ 442 million in bridge loans with the new 2018 notes valued at us$ 297 million.
Harrah's, which was taken private in a 2008 leveraged buyout by Apollo Management and TPG Capital LP, has struggled to meet debt costs as the global recession reduces cash flow at its casinos.
The company said it paid us$ 2.1 billion in interest and other debt expenses last year.