{"id":700,"date":"2009-03-10T14:44:00","date_gmt":"2009-03-10T22:44:00","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/blogs\/dmckee\/index.cfm\/2009\/3\/10\/Boyd-cuts-through-the-crap"},"modified":"2017-10-16T09:29:03","modified_gmt":"2017-10-16T17:29:03","slug":"boyd-cuts-through-the-crap","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/boyd-cuts-through-the-crap\/","title":{"rendered":"Boyd cuts through the crap"},"content":{"rendered":"

There’s no longer any pretense whatsoever that Boyd Gaming<\/strong>‘s takeover offer for Station Casinos<\/strong> is being pitched to Station management. In its reply to Station CEO Frank Fertitta III<\/strong>‘s trash-talking refusal of Boyd’s offer, the latter posits that “the proposal outlined in its February 23, 2009 letter offers a superior recovery to creditors when compared to the current restructuring offer Station has proposed<\/em>.”<\/p>\n

Boyd’s target audience, the Station bondholders, find themselves in the catbird seat<\/a>. Even if they don’t like the color of Boyd’s money, the onus is on gambling’s best-paid CEO to come up with something better. Responding to Fertitta’s jab at Boyd’s financial status, the company “reiterates that it has sufficient liquidity under its credit facility to finance a cash transaction, and contemplates that no amendment to its credit facility would be required under the proposed transaction structure<\/em>.”<\/p>\n

Translation:<\/strong> There’s as much as $2 billion on the table for you … but not a penny more. Whether or not it’s prudent<\/a> for Boyd to be pushing all its chips into a Station bid (as opposed to finishing Echelon<\/strong>), putting a hard cap on the deal is a wise move, signaling that the company won’t be drawn into more than a finite bidding war.<\/p>\n

\"\"<\/p>\n

Frank Fertitta III: superfluous?<\/em><\/p>\n

In Boyd’s defense<\/strong>, while Station’s cash flow hasn’t been what management cracked it up to be, it would still provide Boyd with a means of paying down the acquisition from Day One. In addition to reducing the potential leverage ratio, Boyd would get an immediate return on its $2 billion — something that can’t be said for the project that has been dubbed “Inch-along.” Boyd can also make the argument that those returns will look even better once it starts making economies of scale and eliminating redundancies … starting with the Fertitta brothers and working downward.<\/p>\n

Oh …<\/strong> and if you’re wondering who’d get the “Station” name (and the brand equity attendant thereupon), I’m told the answer is: Nobody knows. At least not yet.<\/p>\n","protected":false},"excerpt":{"rendered":"

There’s no longer any pretense whatsoever that Boyd Gaming‘s takeover offer for Station Casinos is being pitched to Station management. In its reply to Station CEO Frank Fertitta III‘s trash-talking refusal of Boyd’s offer, the latter posits that “the proposal … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60,57],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/700"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=700"}],"version-history":[{"count":1,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/700\/revisions"}],"predecessor-version":[{"id":20360,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/700\/revisions\/20360"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}