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 Harrah's announced last week that they plan to register up to $710 million in common stock. The selling of the shares should benefit the company directly and is just a small part of Harrah's net worth.
"Was this the long-awaited IPO (initial public offering)? No, it was a registration statement for Paulson & Company who acquired shares in an exchange for bonds previously purchased," KDP Advisor spokesperson Barbara Cappaert said. "It certainly tests the market as to what Harrah's is worth, but it is curious that the company does not think an-all out IPO for company raised shares can be done."
Harrah's announced in June that they would be giving new equity to investors because of the amount of debt they have. In their most recent filing, the company reported $20 billion in debt and although Harrah's reported a $274 million loss in its second quarter, CEO Gary Loveman remains optimistic:
"During the past two years, we've reduced expenses and debt substantially, increased our liquidity to about $3 billion, and acquired the Planet Hollywood Resort and Casino in Las Vegas and Thistletown racetrack in Cleveland. I believe we're well-positioned for an eventual legalization of online gaming in the United States, and more capable of capitalizing on additional growth opportunities than at any time in the past two years."
Harrah's already appears to be making the move to online gambling. They recently launched a free World Series of Poker site for Americans in addition to their real money site in the UK.
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