The $5.4 billion buyout of Station Casinos was approved by the Nevada Gaming Control Board, marking another step forward as the locals gaming giant looks to transition from a public to private company.

The management-led buyout—a partnership between the Ferittas, the company’s founding family, and Colony Capital—now needs the approval of the Nevada Gaming Commission and the National Indian Gaming Commission.

Gaming Control Board Chairman Dennis Neilander said approval of the deal was easy because the board is familiar with all parties involved, and all principals are already licensed to operate casinos in Nevada.

If approved, the Fertitta Colony partnership will be controlled by current Station Casinos Chairman and CEO Frank Fertitta III, company Vice Chairman and President Lorenzo Fertitta and Tom Barrack, founder, chairman and CEO of Colony Capital.

“We expect it to be business as usual for our team members and our customers,” Lorenzo said. “They should not see any change at all.”

The Fertitta brothers will continue to operate the company day-to-day in their current positions.

The only concern about the buyout came from Neilander, who noted that the company’s debt will incease from $3.5 billion to $5.3 billion.

“The only troubling thing to me is the company will be significantly more leveraged compared to what it is now,” Neilander said.

Station Casinos’ chief accounting officer Thomas Friel said 94 percent of that debt is already locked in at fixed rates and the company has a stable and predictable cash-flow. Freil also pointed out that the company still has additional land that could be leveraged.

Lorenzo said the buyout is in the best interest of the company.

“Going forward as a private company will allow us to execute our company’s plans at a time and at a level of comfort that will work for us,” he said.

By Casino Connection Staff

Please login to post your comments.