Boyd Makes $2.4B Offer for Station Casinos

LAS VEGAS-Boyd Gaming Corp. this week offered $2.45 billion in cash and assumed debt for Station Casinos, a locally based owner of 18 off-Strip casinos in the region that is currently reorganizing under Ch. 11 of the US Bankruptcy Code. Boyd Gaming, also locally based, owns six suburban casinos and three Downtown casinos in the region as well as the stalled Echelon resort development on the Las Vegas Strip.

Boyd, now a creditor in the case after having acquired a small portion of Station’s debt, has been trying to purchase some of all of the assets of Station Casinos since February, when it offered $950 million for several of its casinos. Station rejected the offer and filed for bankruptcy protection in July.

Boyd says the latest non-binding offer, which is for all of Station Casinos fee and clear of all liens, claims and encumbrances, represents economic realities that have slashed the company’s value. If accepted, creditors and investors stand to suffer billions of dollars in losses. Station Casinos is currently carrying $6.8 billion in debt, including $2.47 billion tied to its top four properties — Red Rock Resort, Sunset Station, Boulder Station and Palace Station.