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Station Casino owners consider cash infusion

Station Casinos' owners are contemplating putting more of their own money into the company to weather the current economic storm.

The owners could loan the company between $450 million and $500 million, as well as conduct a debt exchange, to reduce the locals gaming company's debt load and related interest payments, a filing Tuesday with the Securities and Exchange Commission said.


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  • Station Casinos had $5.4 billion in long-term debt for the third quarter ended Sept. 30, paying $281.9 million in interest payments during that nine-month period.

    The filing did not specify which of the owners -- the Fertitta family or Los Angeles-based real estate firm Colony Capital -- is infusing the locals gaming company with cash, saying that "entities affiliated with existing equity owners ... or institutions or persons who are investors" will provide the loan.

    Colony Capital owns 75.9 percent of the company. Members of the founding family, the Fertittas, owning 24.1 percent.

    The Fertitta family, which includes company Chairman and Chief Executive Officer Frank Fertitta III, Vice Chairman Lorenzo Fertitta and sister Delise Sartini, invested $870.5 million worth of stock toward the $5.4 billion buyout, which closed in November 2007

    Colony Capital invested $2.6 billion in cash for its equity share.

    Station Casinos also announced Tuesday it hopes to issue a pair of 10 percent secured term loans due in 2016, pushing the earliest maturity date back four years.

    The private exchange of up to $459 million would involve five sets of unsecured notes worth a combined $2.088 billion, with rates ranging from 6 percent to 7.75 percent.

    Some of the notes, which were trading as low as 8 cents on the dollar on Friday, are being offered to be bought back at 54 cents on the dollar.

    The exchange offer is contingent on 60 percent of the old notes being tendered before midnight on Dec. 5.

    If 82.5 percent of the old notes are exchanged, the new ownership's loan would take the form of unsecured, junior subordinate loans.

    Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

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    Glad EX TEAM MEMBER wrote on December 16, 2008 07:03 AM: i am a ex-team member and now very glad that i do not associate myself with that company. i can't still believe that they outsourced our jobs to guatemala....what happened with being a locals casino??? not any longer.. those guatemalans can not even speak english without a huge accent. they know nothing about las vegas and what OUR locals want. but i just hope that you all fall on your face and do file bankruptcy! i will not step foot into another station casino. i'm very sad to say that you will definately not make that fortune 500 thats for sure! GOOD FOR YOU STATION CASINOS!


    Johnny Angel wrote on December 02, 2008 08:53 PM: The RJ got some good ones today. Exgambler,Bob,Steve,Casinocon,Gonzo,Tonydige,TW,Ken,& others hit the nail on the head. We got trouble in river city!!...We ain't got no river$$$!!Breakfast @ Paris/Cafe (24 coffee-shop) for 2 eggs/bacon/toast/coffee is $17.00. Cigs @ giftshop $7.00. Cigs @ $25 Blackjack Table, $7.00 off your Players Card earned Comps??!!I heard the Treasure Island is now giving their employees box lunches vs. warm meals as they have had for many years to help the low wage situation, and layed off the kitchen people from the Employee Dining Room. This is happening all around LV. If you are not from Vegas, you are probably saying boowho...But The EDR is a special place & has been a reward for ever.Viva Las Vegas...Elvis will be back


    Pat McGroin wrote on November 28, 2008 10:47 AM: Casinos aren't like Wal-Marts. They are not a necessity. They are for discretionary spending. There was no need to have casinos all over the place. It's called supply and demand.


    ex gambler wrote on November 26, 2008 02:19 PM: I guess they will be serving Spam for their Thanksgiving buffet.
    The good news is if you earn 1000 points on Thanksgiving, your buffet will be free!


    bob wrote on November 26, 2008 01:58 PM: maybe the company should stop paying 565K for fertitta security. They both have Maybach cars over $386K a piece and hear they are getting new rolls royces. They both have private jets, go figure the company is having money problems....im happy.


    SteveMiller4LV wrote on November 26, 2008 12:27 PM: Maybe if Stations and Harrahs had not built competitive-to-Nevada casinos on Califonria highways leading into Laughlin and Reno, their Nevada properties would be in better shape.


    casinocon wrote on November 26, 2008 12:20 PM: BOYCOTT Station Casinos! Any "locals" casino who fires local workers and sends their reservation call center overseas doesn't deserve my patronage or yours. BOYCOTT STATION CASINOS!


    Gonzo wrote on November 26, 2008 12:16 PM: After reading most of the post I have to agree that greed has changed Vegas in a very bad way. I've been visiting Vegas for 20 years and have seen the changes to the high end restraunts , the bottle service at outrageous prices, the room rate skyrocket and the mid level player just pushed to the side. I started staying at the Rio just after the first tower was built. I just loved the place , I told all my friends about it and they also booked there for their vacations. I watched as it grew larger and larger , then the Harrah's corporation bought it from the private owners. From that day forward it started to change, the beautiful cocktail servers were gone , the offers for rooms and food -gone- the comfortable feel wasn't there anymore. The original owners seemed to take pride in their hotel and services. It must have been because they owned the place and made a good living with out paying stock holders. Harrah's has turned this previously great hotel/casino into a place that no longer care's for the small player and treats them as second class citizens. If you have one of their Gold cards you can't expect much in services or comps. I really don't like the feel of the place anymore , I've decided to give them one more shot on my December trip. If this turns out to be anything less than a pleasant experience that's it for Harrah's..Most average players don't expect free RFB but would like some consideration for their hard earned dollars and not pushed aside because they aren't Platinum or Diamond card holders. I hope they are reading these post !
    Just the thoughts of an average Joe..


    sadden wrote on November 26, 2008 10:56 AM: Amazing how these loans come thru after they lay off all the workers ...Amazing


    TONYDIGE wrote on November 26, 2008 10:25 AM: I'm not sure where all of you are from but its that worthless Colony Capital that rewined Stations. All those Wall Street & Los Angeles investors are what rewined this market. Everybody go green, and don't eat meat. The old school owners are the onew who will always fare the best in Las Vegas. They need to brink back the days of $2.00 breakfast, free rooms, and concentrating on casino profits while lettig the rest go. We need to keep our Frank Fertittas's, Bill Boyd's, and Steve Wynn's you can take your Donald Trump's and Sheldon Adelsons and dump them off Hoover Dam.


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