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Published Monday, Feb. 23, 2009 | 1:58 p.m.
Updated Monday, Feb. 23, 2009 | 5:02 p.m.
- Station responds to lawsuit, misses $15.5M payment (2-17-09)
- Harrah’s hit with class-action lawsuit over debt plan (2-16-09)
- Station Casinos sued over reorganization plan (2-13-09)
- Regulators keep tabs on Station, proposed restructuring (2-13-2009)
- Bondholders’ issue: Who best to run Station? (2-9-2009)
- Station Casinos unveils restructuring plan to appease creditors (2-3-09)
- Station, Harrah’s to bondholders: Help us refinance (12-9-2008)
UPDATED STORY: Boyd makes play for Station properties
Boyd Gaming is offering to purchase Station Casinos as part of a reorganization plan or a bankruptcy auction.
In a letter delivered to Station's board of directors today, Boyd Chief Executive Officer Keith Smith said his company is prepared to offer about $950 million for most of the company's casinos, excluding Red Rock Resort, Boulder Station, Palace Station and Sunset Station. Boyd is also interested in purchasing Station's remaining casinos for a yet-to-be-determined price.
For now, Boyd's offer includes Texas Station, Aliante Station, Sante Fe Station, Green Valley Ranch and the Fiesta casinos.
Smith said Boyd's offer would offer "superior recovery" for bondholders relative to Station's recent offer, which asks bondholders to forgive a significant portion of the company's debt by exchanging their bonds for ones worth less money.
As of year-end 2008, Boyd had about $2 billion in cash under a revolving line of credit — enough to finance a cash transaction, the letter said.
"We believe that Boyd is uniquely qualified to operate the assets of Station. We are dedicated to operating first class casino entertainment facilities and have demonstrated this commitment within the Las Vegas market for over thirty years," it said.
Station is expected to file bankruptcy after bondholders vote on the company's exchange offer, which expires March 2.
Find additional coverage and analysis in Tuesday’s edition of the Las Vegas Sun.