LAS VEGAS-Harrah’s Entertainment said Tuesday it is planning to sell $720 million of eight-year, 11.25% notes as part of its ongoing de-leveraging initiative. Harrah’s says the notes are to be issued under the same indenture governing the $1.37 billion of 11.25% senior secured eight-year notes issued in June through Harrah’s Operating Escrow LLC and Harrah’s Escrow Corp. The company plans to use the proceeds to repay a portion of its term loan and revolving credit debt.

Harrah’s owns 53 casinos worldwide- including, on the Las Vegas Strip, Caesars Palace, Flamingo, Bally’s, Paris and the Rio. The June issuance of new debt by Harrah’s was seen as a way for the company to lower its overall debt burden and interest expense by taking advantage of that fact that its existing debt had been trading at a discount due to uncertainties about its performance.

In April, Harrah’s investors tendered $5 billion (58%) of $8.6 billion of notes in response to a tender offer. In exchange, they received $3.4 billion of new 10% Second-Priority Senior Secured Notes due 2018. Only 20% of $1.2 billion in notes maturing in 2010-2013 were tendered.

In February, Harrah’s submitted requests to tap the remaining $740 million of its $2 billion senior secured revolving credit line and suspended matching contributions to employee retirement programs. In January, it delayed the completion and opening of its 660-room addition to Caesars Palace indefinitely.

While it may not be actively building it is actively planning. In July it acknowledged planning for open-air, pedestrian-only avenue of food, drink and fun for the Las Vegas Strip. It would be molded from what is currently a side street across from the Bellagio that begins between the entrances to Harrah’s O’Sheas and Flamingo casinos and, in classic Vegas extravagance, would end at the largest Ferris wheel in the world.

A source with Harrah’s told at the time that “project link” is still in concept stage and likely will remain that was for some time. “There’s really no pedestrian-friendly, outdoor area on the Strip…and very few if anyone could deliver anything like it,” said the source. “Our landholdings and existing resort structure wouldn’t require us to remove a resort or a casino floor and take that revenue offline.”

The pedestrian-only walkway would extend approximately 1,000 feet in from the Strip on a jagged, diagonal path and be lined with 25 to 30 eating and drinking establishments. At the end of the walkway would be a 600-foot “observation wheel” similar to the London Eye or the Singapore Flyer, which at 541 feet is currently the tallest in the world.

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