Station Casinos upsizes revolver to $650 million, adds $250 million term loan

By Sara Rosenberg

New York, Oct. 22 - Station Casinos Inc. increased the size of its six-year senior secured revolver (Ba2/BB) to $650 million from $500 million and added a $250 million term loan (Ba2) to the capital structure, according to an SC 13D/A recently filed with the Securities and Exchange Commission.

Deutsche Bank and JPMorgan are joint lead arrangers and joint bookrunners on the deal.

The revolver had been launched to investors back in July with price talk of Libor plus 225 basis points.

Proceeds will be used to help fund the buyout of the company by Fertitta Colony Partners LLC for $90.00 per share in cash.

The total value of the transaction is about $8.8 billion, including the assumption or repayment of about $3.4 billion of debt.

Fertitta is a new company formed by Frank J. Fertitta III, chairman and chief executive officer of Station, Lorenzo J. Fertitta, vice chairman and president of Station, and Colony Capital Acquisitions, LLC.

Other buyout financing will come from $2.475 billion of CMBS loans and $250 million in real-estate backed delayed-draw term loans.

The Nevada Gaming Commission and stockholders have already approved the transaction. Approval of the National Indian Gaming Commission is the final remaining regulatory approval that is needed to complete the deal.

Las Vegas-based gaming and entertainment company Station Casinos expects to close the transaction near the end of this month.

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