Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-Boyd Gaming Corp. this week offered $2.45 billion in cash and assumed debt for Station Casinos, a locally based owner of 18 off-Strip casinos in the region that is currently reorganizing under Ch. 11 of the US Bankruptcy Code. Boyd Gaming, also locally based, owns six suburban casinos and three Downtown casinos in the region as well as the stalled Echelon resort development on the Las Vegas Strip.

Boyd, now a creditor in the case after having acquired a small portion of Station’s debt, has been trying to purchase some of all of the assets of Station Casinos since February, when it offered $950 million for several of its casinos. Station rejected the offer and filed for bankruptcy protection in July.

Boyd says the latest non-binding offer, which is for all of Station Casinos fee and clear of all liens, claims and encumbrances, represents economic realities that have slashed the company’s value. If accepted, creditors and investors stand to suffer billions of dollars in losses. Station Casinos is currently carrying $6.8 billion in debt, including $2.47 billion tied to its top four properties — Red Rock Resort, Sunset Station, Boulder Station and Palace Station.

Station, which holds assets under PropCo and OpCo divisions, has said its board, advisors and stakeholders will review Boyd’s latest offer. Station adds that it has not made a decision to sell as part of the reorganization and did not solicit the proposal. The company’s exclusive period to propose a plan of reorganization with the bankruptcy court was recently extended by the court until March 25, 2010. If a compromise isn’t reached with lenders by that time, the assets could be divvied up between lenders. Station’s top four properties are under the PropCo unit.

“We believe our offer price represents fair value to Station’s stakeholders and takes into account current market conditions, our deep knowledge of the gaming industry, and Station’s publicly disclosed financial performance,” states the offer. “Our Proposal to acquire both the OpCo Assets and the PropCo Assets reflects the belief that there is more value in keeping these assets together rather than separating them.”

Boyd Gaming has significant availability and flexibility under its revolving credit facility to consummate the proposed transaction. However, Station appears to feel the same way about the new offer as it did the previous offer.

“The new proposal is similar to Boyd’s previous non-binding preliminary indication of interest submitted in February 2009, which was rejected…,” a Station spokesperson tells GlobeSt.com. “The Company is currently in the process of negotiating with its creditors toward an overall plan of reorganization that is in the best interests of the Company and its stakeholders. To date, the Board has made no determination to pursue, nor has the Company taken any steps toward pursuing, a sale of all or any portion of the Company’s assets.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.