Boyd Gaming Corp. has renewed its offer to buy rival Station Casinos in a deal valued at $2.45 billion in cash and debt, according to Bloomberg News Service.
The offer is non-binding and subject to a more detailed review of Station’s finances, Boyd said in its letter to Station’s directors. Boyd included the letter in a U.S. Securities and Exchange Commission filing yesterday.
"Boyd Gaming is in the best position to execute a smooth transition of ownership and operate the Station properties efficiently from day one," Chief Executive Officer Keith E. Smith said in the letter.
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Since filing for bankruptcy in July, Las Vegas-based Station has battled its unsecured creditors and a group of dissident lenders over issues including four casino leases. Boyd has complained in court papers that Station is stalling potential sale talks by refusing to allow a detailed review of financial records.
Station spokeswoman Lori Nelson said in an e-mail that the board, controlled by family members of deceased founder Frank Fertitta and Tom Barrack’s Colony Capital LLC, haven’t decided whether to sell the company.
"The board has made no determination to pursue, nor has the company taken any steps toward pursuing, a sale of all or any portion of the company’s assets," Nelson said in a statement.
Nelson said the latest offer from Boyd was similar to a February proposal, which Station rejected.
Station listed assets of $5.7 billion and debt of $6.5 billion when it filed for court protection under Chapter 11 of the U.S. Bankruptcy Code. Chapter 11 is typically used by companies that expect to reorganize and exit bankruptcy.
Station’s debt was the result of a leveraged buyout in November 2007. The company has 13 properties in Las Vegas plus five joint ventures, and operates casinos for American Indian tribes.
Boyd said it was willing to buy Station’s operating and property units. It excluded what it called Station’s "Landco" assets, which are collateral for a $250 million term loan. No other details about the assets were given in Boyd’s letter.
The offer includes more assets than Boyd originally sought to buy in February. Boyd initially offered $950 million for part of Station.
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