Rio files to sell stock

Monday, Nov. 3, 1997 | 10:55 a.m.

Rio Hotel & Casino Inc. has filed with the Securities and Exchange Commission to sell 3 million common shares of stock.

The company will use the proceeds to reduce borrowing under a bank credit line that matures on June 30, 2001, according to a registration statement filed today. The credit line had $70 million outstanding at Sept. 30, 1997.

The number of Rio shares outstanding will increase about 14 percent to 24.4 million. Salomon Brothers Inc. and Merrill Lynch & Co. plan to underwrite the stock sale.

Rio Chairman Anthony Marnell announced last week that the company would spend about $750 million to develop 43 acres northeast of its property, more than doubling the number of rooms at the site to 5,500.

In addition to the expansion, company officials announced they would build a street linking the property to Industrial Road as well as a train passenger station in hopes that Los Angeles-to-Las Vegas rail service gets back on track.

Other improvements include a 100,000-square-foot convention center, 10,000 square feet of new retail space, nine luxury suites, an expanded outdoor entertainment area with an additional swimming pool, a 650-car valet parking garage and a Chinese restaurant.

The plan also calls for additional exhibition space in the new Masquerade Village.

Rio shares remained unchanged this morning at $21.94.