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Daily Archives: February 25, 2009
On February 23, in a filing with the Securities and Exchange Commission, Boyd Gaming Corporation, the No. 2 Las Vegas locals casino company, made a $950 million offer to acquire 18 Station Casino properties in Las Vegas.
Boyd Gaming currently operates nine casinos in Las Vegas and Henderson, Nevada.
Boyd is in a favorable financial position having a $2 billion revolving credit line after they halted their $5 billion Echelon resort complex on the Las Vegas Strip last year when their development partners couldn’t get financing.
In the proposed deal, Boyd Gaming would acquire the bulk of their rival’s properties, Station Casinos would retain ownership of the Red Rock Resort, Palace Station, Boulder Station, Sunset Station and 356 acres of undeveloped land they own in the Las Vegas Valley.
Privately held Station Casinos has been in financial trouble for much of the past 12 months and is on the brink of filing for bankruptcy, The company missed a $14.6 million bond payment on Feb. 2 and a $15.5 million bond payment last week. On Feb 3, Station Casinos asked its bondholders to approve a restructuring plan that could allow the company to emerge from a Chapter 11 filing by this summer. Bondholders have until March 2 to vote on the restructuring plan.
Station Casinos bondholders may strongly consider the offer, preferring to have Boyd running the casinos than taking control of the properties in bankruptcy, hoping to retain all the top talent. Lenders don’t want to manage casinos.