GAMING:

Boyd Gaming offers to buy Station

Sun file photo

Texas Station was opened in the mid-90s by Station Casinos.

By Sun Staff (contact)

Published Monday, Feb. 23, 2009 | 1:58 p.m.

Updated Monday, Feb. 23, 2009 | 5:02 p.m.

Read the letter from Boyd executives to Station Casinos executives

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)

Headlines from the Vegas gaming industry

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.

Discussion: 9 comments so far…

By neiman1

2/23/09 at 4:10 p.m.

Suggest removal

How many jobs go with this change? How many more lose their jobs as the visitors dry up.. $863 billion in stimulus and all we got was the President warning business' to stay away from our city???
By MichaelGreen

2/23/09 at 4:25 p.m.

Suggest removal

Sigh. Neiman, Obama didn't warn business to stay away from Las Vegas. He very properly said that they shouldn't be spending so much money on trips to Las Vegas and the Super Bowl. It wasn't a criticism of Las Vegas. If George W. Bush had said that, you would have said it was the most brilliant statement since the works of Ayn Rand.
By bdover

2/23/09 at 6:32 p.m.

Suggest removal

This looks like a good deal for the bond and shareholders. Boyd is a reputable company that has not overextended its credit line, unlike the Fertittas and Colony Capital. They took the hit at Echelon, and have moved on. Boyd owns a bunch of casinos in other states as well, including part of the Borgata, one of the few remaining profitable casinos in Atlantic City. I was surprised to visit Delta Downs in Louisiana recently and found that it is also a well run Boyd property. Hopefully, the equity holders will not fall for the "haircut" that Stations is offering, and will oust the owners, who took a great "locals" idea, and ran it into the ground with a private buyout based on improbable assumptions and outright greed-which met reality in 2008...
By Lenny_V

2/23/09 at 7:27 p.m.

Suggest removal

There goes the neighborhood. Coast casinos are a cesspool.
By snyderm

2/23/09 at 7:42 p.m.

Suggest removal

The neighborhood already was gone.

Station's customer service has sucked for years. After two legitimate complaints go without ANY response I've had it with that poorly run company.
By limomominlv

2/25/09 at 7:06 a.m.

Suggest removal

Why doesn't Boyd Gaming use the 2 billion in cash and finish the eyesore he's got going on the strip instead? The only thing he has done to THAT property since stopping construction last spring, is change the banners facing 2 of the most elegant properties on the Blvd. The city AND Steve Wynn should make Boyd Gaming tear it down or finish it...At least the Stardust wasn't an eyesore, and it was making money..duh.
By James_P_Reza

2/25/09 at 10:14 a.m.

Suggest removal

Michael Green, it is me who is sighing at your response. President Obama made a mistake in calling Las Vegas out by name. Instead of coming to Las Vegas, many of those conferences were rebooked for San Francisco and New York at additional cost. They spent more money just to give the proper impression. I cannot understand why there are so many apologists trying desperately to rewrite the truth. And please, no partisan accusations; I voted for the President.

* * *

Boyd owns the property on the Strip and he can do what he wants with it -- including never finish it. The "city" has no say in whether a private property owner develops his property or not, and Steve Wynn would cringe at the idea that he could or should do anything about it.

Boyd's Strip property isn't going anywhere, so he can finish it later. It's smarter to buy existing properties for cash flow than to build in this economy.
By ksand99

2/25/09 at 10:42 a.m.

Suggest removal

Correction, Obama said that companies who took bailout money should not be taking extravagant trips.

I guess you disagree and would like our tax dollars spent on corporate retreats in the Bahamas with private concerts.
By James_P_Reza

2/25/09 at 12:04 p.m.

Suggest removal

"Correction, Obama said that companies who took bailout money should not be taking extravagant trips."

What, exactly, are you correcting?

Obama called out Las Vegas by name. The companies are still taking their trips, except to elsewhere. What do the Bahamas have to do with anything?