Exhibit 99.1
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Contact:
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Brad Belhouse – Investors
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Gary Thompson – Media
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Harrah’s Entertainment,
Inc.
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Harrah’s Entertainment,
Inc.
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(702) 407-6367
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(702) 407-6529
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Release #HET
01-0499
Harrah’s Amends Revolving
Credit Agreement;
Bank Borrowing Capacity Rises to
$4 Billion From $2.5 Billion
LAS VEGAS, February 1, 2005 –
Harrah’s Operating Company, Inc., a subsidiary of
Harrah’s Entertainment, Inc. (NYSE:HET), said today it has
agreed to amend the terms and increased the borrowing capacity of
its bank credit facilities.
The amendment to the agreement
will:
•
Convert the previous $2.5 billion
revolving credit facility to a $4 billion revolving-credit
facility;
•
Provide for a further increase in
the total borrowing capacity to $5 billion, if mutually acceptable
to Harrah’s and its lenders;
•
Lower the interest rate, which is
based on Harrah’s debt ratings, from LIBOR plus 110 basis
points to LIBOR plus 87.5 basis points – the lowest of any
casino company.
•
Maintain the maturity of April 23,
2009.
The amended agreement will become
effective upon the satisfaction of various closing conditions,
including the closing of Harrah’s acquisition of Caesars
Entertainment, Inc., which is expected to occur in the second
quarter of 2005. As of
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December 31, 2004, $1.58 billion in borrowing
was outstanding under Harrah’s existing credit
agreement.
“A portion of the incremental
borrowing capacity provided by the amended credit facility will be
used to fund the Caesars transaction,” said Charles Atwood,
Harrah’s senior vice president and chief financial
officer.
Harrah’s agreed to acquire
Caesars for approximately $1.87 billion in cash and 67.7 million
Harrah’s shares.
Banc of America Securities LLC and
Wells Fargo Bank National Association were joint lead arrangers and
joint book managers.
Bank of America, N.A. was
administrative agent. Citicorp USA, Inc., JPMorgan Chase Bank,
Wells Fargo Bank, N.A., and The Royal Bank of Scotland, PLC were
co-documentation agents. Deutsche Bank Trust Company Americas was
syndication agent for this transaction.
Founded 67 years ago, Harrah’s
Entertainment, Inc. owns or manages through various subsidiaries 28
casinos in the United States, primarily under the Harrah’s
brand name. Harrah’s Entertainment is focused on building
loyalty and value with its target customers through a unique
combination of great service, excellent products, unsurpassed
distribution, operational excellence and technology
leadership.
More information about
Harrah’s Entertainment is available on the company’s
Web site, www.harrahs.com.
This release includes
“forward-looking statements” intended to qualify for
the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. You can identify these
statements by the fact that they do not relate strictly to
historical or current facts. These statements contain words such as
“may,” “will,” “project,”
“might,” “expect,” “believe,”
“anticipate,” “intend,”
“could,” “would,” “estimate,”
“continue” or
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“pursue,” or the negative or other
variations thereof or comparable terminology. In particular, they
include statements relating to, among other things, future actions,
strategies, future performance, future financial results of
Harrah’s and Caesars Entertainment, Inc. and Harrah’s
anticipated acquisition of Caesars. These forward-looking
statements are based on current expectations and projections about
future events.
Investors are cautioned that
forward-loo
