The casino company plans to invest in capital improvements, while cutting back in other areas. The purchase was announced after the close of trading. Harrah’s shares rose $1.45 to $36.76 Tuesday. The transaction is expected to close by the fourth quarter. The acquisition is subject to regulatory approvals. Earlier this year, Harrah’s refinanced a portion of its own existing debt. Harrah’s plans to refinance Harveys existing debt, which amounted to $367 million as of Feb. The merger will bring the Harrah’s database to more than 20 million players. With the purchase, Harrah’s will bring gamblers in the Iowa and Colorado markets into its Total Rewards customer loyalty program, which rewards play at Harrah’s casinos in all its markets. Tolosa characterized Harveys as an “admirable competitor” for years. At the state line, the two properties flank U.S. “It gives us a competitive position for the future.”Īt this point, Harrah’s company management is uncertain what name Harveys will operate on. “Harveys represents a big opportunity not only in Lake Tahoe, but in Iowa, where they own two properties,” said Carlos Tolosa, Harrah’s western division president.
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