Maloof’s could own up to 20 percent of Palms when deal is done

Jun 20, 2011 7:48 PM

The Maloof Family, builders and operators of the Palms Hotel/Casino on Flamingo Road, has taken on partners in Leonard Green Partners LP and TPG Capital. The latter two groups had acquired most of the property’s $400 million debt.

In an announcement last week, George Maloof said a deal with the investment companies will "significantly reduce" the property’s debt and the family will have an equity position in the operation.

According to a story in the Sacramento, Calif., Bee, the Maloof family’s equity participation will be two percent with Leonard Green and TPG Capital each owning 49 percent of the operation. George Maloof told the Bee, "we could own up to 20 percent when it’s all said and done."

TPG Capital is a partner with Apollo Group in the ownership of Caesars Entertainment Corp. while Leonard Green Partners was the major bidder for the half-interest in the Borgata casino in Atlantic City owned by MGM Resorts International.