HORSESHOE GAMING HOLDING CORP - Annual Report (Regulation S-K, item 405) (10-K405) ITEM 7A. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT ...

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The following is an excerpt from a 10-K405 SEC Filing, filed by HORSESHOE GAMING HOLDING CORP on 3/30/2000.

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HORSESHOE GAMING HOLDING CORP - 10-K405 - 20000330 - MARKET_RISK

ITEM 7A. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

The Company's exposure to market risk is changes in its interest rate risk associated with long term debt. To date, the Company has not held or issued derivative financial instruments for trading purposes, and the Company does not enter into derivative transactions that would be considered speculative positions. For debt obligations, the table presents principal cash flows and related weighted average interest rates by expected maturity dates.

(Dollars in thousands)

                                                                      Maturity Date
                                    -----------------------------------------------------------------------------------      Fair
                                      2000         2001      2002       2003        2004        Thereafter      Total      Value (1)
                                    ---------     -------   -------   --------    ----------     ---------     --------    --------
Liabilities
   Long-term debt
    Fixed rate                      $ 154,748     $   850   $   850   $ 14,684    $    5,321     $ 757,829     $934,282    $916,482
       Average interest rate            8.122%      8.000%    8.000%     8.000%       10.000%        8.783%
    Variable rate                   $   9,497     $ 9,308   $ 9,924   $ 54,375    $  123,125     $ 118,437     $324,666    $324,666
       Average interest rate (2)        8.076%      8.078%    8.073%     8.662%        8.552%        8.580%

(1) The fair values are based on the borrowing rates currently available for debt instruments with similar terms and maturities and market quotes of the Company's publicly traded debt.

(2) The average interest rates were based on December 31, 1999, variable rates. Actual rates in future periods could vary.