Gaming briefs for Nov. 14, 2003

Friday, Nov. 14, 2003 | 11:21 a.m.

Agency rates debt for Green Valley Ranch expansion

Moody's Investors Service has assigned a B1 rating to Station Casinos Inc.'s proposed $250 million senior secured bank debt issuance. The rating agency also assigned a B1 senior implied rating, a B2 senior unsecured issuer rating and a stable rating outlook.

Proceeds from the bank debt will be used to fund the construction of a $115 million expansion project at Station's Green Valley Ranch Station Casino in Henderson and to refinance existing debt and equipment leases.

The ratings are considered speculative grade and reflect typical risks associated with such projects, Moody's said. Offsetting those factors are the "strong operating performance of the property, Station's successful track record of building, developing and managing hotel-casinos in the Las Vegas locals' market and the good risk-reward profile of the project," the ratings agency said.

The Greenspun family, owner of the Las Vegas Sun, is a partner in Green Valley Ranch.

Firm reports increase in online bookings

Park Place Entertainment Corp. of Las Vegas said it has sold more than 500,000 domestic room nights so far this year through this week, a 31 percent increase from all of last year.

This year the company redesigned websites for its major resort brands, including Caesars, Bally's, Paris, Flamingo, Grand Casinos and Hilton.

Between Jan. 1 and Nov. 10, Park Place sold more than 506,000 room nights directly through its 18 company-branded websites. That compares to 386,000 room nights sold through company websites in 2002, 269,000 room nights in 2001 and 114,000 nights in 2000.

Hotel room nights booked through company websites in the first 10 months of 2003 increased 61 percent from the same period last year and was up 45 percent from the same period in 2001.

The figures don't include rooms booked online through third-party websites or through referrals to Park Place call centers.

Subpoenas announced

The U.S. Attorney's Office in Orlando, Fla., served grand jury subpoenas on Park Place Entertainment Corp. and Caesars Palace.

The company announced the subpoenas in its quarterly report filed with U.S. Securities and Exchange Commission this morning. The company said it believed that the subpoenas were issued in connection with an investigation by the U.S. Attorney's Office into possible money laundering violations by an unnamed former casino customer.

Those charges apparently stem from cash transactions at Caesars Palace.

"We have been advised that neither the company nor Caesars Palace are targets of the grand jury investigation. We are complying with the subpoenas and are cooperating with the U.S. Attorney's Office," the SEC filing said.

Tribe may fire casino's management company

FRESNO, Calif. -- The Chukchansi tribe said it might fire the company that's been managing the Chukchansi Gold Resort and Casino.

The tribe objected to the way Cascade Entertainment handled the subcontractors who built the Madera county complex, among other things.

Cascade also had a seven-year development agreement with the tribe, which was canceled last month over similar concerns. The company still owes subcontractors more than $15 million for their work on the $150 million gaming complex.

Now, a lawyer for the tribe said Cascade could lose the management contract as well.