By Lisa Kerner
Charlotte, N.C., Feb. 25 - Fertitta Colony Partners LLC entered into a definitive agreement to acquire Station Casinos, Inc. for $90 per share in cash in a transaction valued at $8.8 billion, including the assumption or repayment of $3.4 billion of debt.
Station Casinos chairman and chief executive officer Frank J. Fertitta III and vice chairman and president Lorenzo J. Fertitta formed Fertitta Colony, which includes Colony Capital Acquisitions, LLC, an affiliate of Colony Capital, LLC.
The transaction is expected to be completed in six to nine months, according to a company news release.
Station Casinos said its board of directors approved the merger agreement and recommended that its stockholders vote in favor of the deal. The company plans to pay stockholders the regular quarterly dividend of $0.2875 per share
Affiliates of Deutsche Bank and JPMorgan Chase Bank have committed financing in addition to equity funding from Frank and Lorenzo Fertitta and Colony.
Under the agreement, which includes a $160 million termination fee, Station has 30 days in which to solicit acquisition proposals from third parties.
Colony Capital is a Los Angeles private investment firm specializing in real estate-related assets and securities.
Station Casinos is a Las Vegas gaming and entertainment provider.
| Acquirer: | Fertitta Colony Partners LLC
|
| Target: | Station Casinos, Inc.
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| Transaction value: | $8.8 billion, including $3.4 billion of debt
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| Payment per share: | $90
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| Termination fee: | $160 million
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| Announcement date: | Feb. 26
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| Expected closing: | Within six to nine months
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| Stock price for target: | NYSE: STN; $83.30 on Feb. 23
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