Boyd Gaming makes offer for Station Casinos

AP News
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Posted: Dec 17, 2009 8:29 AM

Boyd Gaming Corp. made an offer to buy casino competitor Station Casinos Inc. out of bankruptcy protection as it looks to take a bigger slice of the action among Las Vegas locals.

Boyd said in a regulatory filing Wednesday that the nonbinding offer would involve a cash payment and assumption of some debt totaling $2.45 billion. Further details were not disclosed.

Boyd said it was looking to complete the proposed deal "as quickly as possible." The casino operator, based in Las Vegas, said in the Securities and Exchange Commission filing that it has enough cash available under a revolving credit agreement to complete a deal.

Privately held Station Casinos, whose Las Vegas casinos cater to locals, rejected a $950 million offer earlier this year from Boyd to buy some or all of its assets.

The company, which filed for Chapter 11 bankruptcy protection in July, asked the U.S. Bankruptcy Court in Reno, Nev. last month for a four-month extension to submit a reorganization plan.

At the time of its Chapter 11 filing, Station said it had $5.7 billion in debt. Boyd's filing revealing the offer doesn't outline which debt it will assume or how much Station's creditors might be paid.

If Station accepts the offer, it must be confirmed by the U.S. Bankruptcy Court, District of Nevada.

Boyd also said it would work with the Nevada Gaming Commission and the Nevada Gaming Control Board on any needed approvals.

Boyd owns and runs casino properties in Nevada, Mississippi, Illinois, Louisiana, Indiana and New Jersey.