Station Casinos says no to Boyd buyout offer

Mar 4, 2009 4:00 AM
Staff & Wire Reports |

Regional casino operator Station Casinos Inc. said Tuesday that it's not interested in a buyout offer from rival Boyd Gaming Corp., and instead extended its deadline to work through a plan to restructure its debt.

Most of Station's lenders and senior notes holders have signed agreements to give the Las Vegas-based company until April to win approval for its plan, Station said in a regulatory filing to the Securities and Exchange Commission.

The SEC filing also included a letter dated Tuesday to Boyd Gaming, which offered $950 million in cash last week for most of Station Casinos' assets.

Boyd's offer excluded assets secured by certain loans. Boyd said it was willing to buy the assets after a bankruptcy reorganization or as part of one.

Station responded that its board had concerns about the offer, including over Boyd's ability to perform given its own financial position. Last week Boyd reported losses of $220.8 million for the fourth quarter, and company executives repeatedly told investors during a conference call that they would not answer questions about the buyout offer.

Boyd Gaming Corp., which owns 16 casinos in Nevada, New Jersey, Mississippi, Louisiana, Indiana and Illinois, has put it $4.8 billion Echelon development in Las Vegas on hold indefinitely.

"It is in the best interests of the company and our stakeholders to proceed with the current restructuring plan," Station Casinos chairman and chief executive Frank J. Fertitta III said in the letter. "Should circumstances change, we will call you."

Station Casinos announced earlier this month that it plans to swap high-cost debt for low-cost debt and a $244 million capital infusion through a prepackaged bankruptcy filing.

The extension means noteholders can vote on the plan until April 10. The forbearance agreements expire April 15.

This year, the Las Vegas-based company has elected to skip about $30 million in scheduled interest payments to holders of its senior notes and senior subordinated notes.

Station Casinos owns 13 casinos, mostly catering to Las Vegas-area resident. Its properties include Palace Station Hotel & Casino, Boulder Station Hotel & Casino and Sunset Station Hotel & Casino.

Related Articles:
Boyd Gaming vs. Station Casinos
Boyd Gaming tells Fertittas, "Let's Make a Deal"
Station Casinos seeking support for restructuring
More defaults ahead for debt-heavy casinos
Green Valley Ranch winner in Bookies Battle
Greenspun looking for bigger slice of the pie?