Boyd Gaming Makes $950 Million Offer on Station Casinos

25 February 2009

On Monday, Boyd Gaming Corporation released a letter addressed to Frank J. Fertitta III, Station Casinos Inc.’s chairman, president and chief executive, which outlined a proposal to buy the struggling casino’s assets for $950 million.

Boyd Gaming told Station Casino in the letter that they are ”uniquely qualified to operate the assets of Station.” However, Boyd Gaming stressed that the offer hinges on a number of assumptions, including that Station Casinos would stay in operation.

Recently included in a U.S. News & World Report list of “15 Companies That Might Not Survive 2009,” Stations Casinos Inc. has recently missed a $15.5 million interest payment and is also embroiled in a lawsuit with holders of its outstanding senior and senior subordinated notes, according to the Associated Press.

On Wednesday, Station Casinos announced that it is starting to make private exchange offers to exchange certain outstanding debt securities.