Las Vegas Sun NewsFertittas putting another $73 million into Station Casinos
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Tuesday
7 February 2012
2 a.m.
Station Casinos LLC executives Frank Fertitta III and Lorenzo Fertitta plan to invest another $73 million in the Las Vegas company by buying out another shareholder.
In another indication of the Fertitta brothers’ support for the company and their belief in the struggling locals gaming market, Station disclosed Monday that a company affiliated with the Fertittas plans to buy certain ownership units held by JPMorgan Chase Bank N.A.
The deal, if consummated, could mean JPMorgan could lose its rights to appoint one of Station’s “board of managers.” In 2010, it was revealed JPMorgan would appoint veteran gaming executive Stephen Greathouse to the board.
JPMorgan acquired its ownership stake in Station last year under a deal in which some of its debt was converted to equity during the Station bankruptcy process.
Monday’s disclosure by Station means the Fertitta brothers have now invested — or agreed to invest — some $273 million into the company to maintain control of it following its 2009 bankruptcy filing.
As Station was emerging from bankruptcy last year, four of its largest casino resorts were essentially foreclosed on by lenders Deutsche Bank and JPMorgan Chase, which were owed $2.475 billion. The Fertittas maintained equity interests in those resorts as well as management contracts.
The Fertittas teamed up with certain lenders to buy another group of casinos out of the bankruptcy for $772 million.
The Fertittas separately purchased Green Valley Ranch resort for $500 million and maintained a management contact for Aliante Station, which was foreclosed on.
As it was emerging from bankruptcy, the Las Vegas locals’ gaming leader said Frank Fertitta III would continue in his role as CEO while Lorenzo Fertitta was appointed as a manager.
Separately, Station disclosed Monday that its full-year financial report will show net revenue in 2011 held steady at about $1.178 billion versus $1.114 billion in 2010.
EBITDA — a key profitability measure — also was steady at $284 million versus $280.1 million in 2010, Station said.
EBITDA means earnings before interest, taxes, depreciation and amortization.
Like other locals gaming companies, Station has seen its results hurt during the recession by consumers limiting spending due to worries about foreclosures and unemployment.
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Looks like JPMorgan has seen the writing on the wall and is bailing for a meager buyout. Better than nothing as these guys will burn anyone and everyone to achieve their goal of a complete monopoly of the Las Vegas gaming market. Not gonna happen as they have pissed too many players to achieve that end. Stations is finding out the hard way that once you lose a customer to the competition they are gone forever. A lesson for any business. NEVER give your customers a reason to check out the competition, they just may find the grass is greener.
Comment removed by moderator. Off Topic
The article states: "Station has seen its results hurt during the recession by consumers limiting spending due to worries about foreclosures and unemployment." That may have had something to do with it, but the REAL reason was that Stations treated their locals like crap: they tightened up their machines, and cut back on comps, perks and promotions. Many locals jumped ship and went elsewhere (myself included) and vowed they'd never come back. No, I think Stations pretty much shot themselves in the foot and THAT is the major reason they saw diminishing results. I'll repeat myself when I say that Stations may love locals, but they treat them like crap.
I'll gamble at a Station Casino long before I gamble at a Boyd property. Boyd's comps/free bets can't hold a candle to Station. Station was sending me weekly $25 free bets...Boyd gave me a $5 free bet every other month..and I was gambling at Boyd 3 times as much. If there are ever questions about a mistake at table games, Station Casinos will honor the word of the player. Boyd will always call the cameras..even for measly $5 bets.
I can't comment on the "looseness" of the slots because I rarely play slots. If its Red Rock vs. SunCoast...I'll take a comp at the Yard House any day of the week over a comp at TGIF's.
How about putting some of the $ toward doing something with Club Cherry at Red Rock? Been dormant as long as I can remember and it's a great spot. Blue Martini West would be a gold mine in that location.
The Fertitas shouldn't still be the owners of Stations. They were in debt for $6+ B and it was reduced to $2B . Having great Pimps (lawyers) helps but they shouldn't be the owners of the Casinos. They do have a good Buffet with $4.99 for breakfast a good deal.As for the Tightness of the slots they all do it u have to be selective and be in control. Another point since Maloof's has ltd ownership of the Palms it has gone downhill. Do not go to the Palms.
total scum---treat employees like garbage--use bankruptcy court to screw everyone--f these people i will never eat, play or walk into one of their $hitholes.