Station Casinos indicated today that it intends to become a publicly traded company again, about eight years after the gaming giant was taken private.
The company filed a registration statement with the Securities and Exchange Commission regarding a proposed initial public offering, but said in a brief statement that it has not determined the number of shares it will offer or the price range. Station said it plans to acquire its management company, Fertitta Entertainment LLC, for $460 million.
Station also did not specify on which market its stock will be traded. The locals-oriented company declined to comment beyond its statement and regulatory filings.
Station owns 19 properties in Southern Nevada — including Red Rock Resort, Green Valley Ranch and Palace Station — and manages two tribal casinos.
A multibillion-dollar leveraged buyout took Station private in 2007, concluding about 14 years during which Station was a public company. The debt taken on in that deal became problematic when the recession hit, and Station filed for bankruptcy reorganization in 2009. It emerged from bankruptcy in 2011.
Frank Fertitta III, Station’s chief executive, and Lorenzo Fertitta now own about 58 percent of Station. Deutsche Bank owns 25 percent.
Station’s net revenue increased by 5 percent in the second quarter this year — its ninth straight quarter of year-over-year revenue growth. The company has also reported 17 straight quarters of growth in its adjusted earnings before certain costs.
In its registration statement with the SEC, Station sought to relay its own financial strength and that of the broader Las Vegas economy. The filing noted “favorable economic and market fundamentals” including robust population and employment growth, as well as a record number of visitors to Las Vegas last year. Furthermore, the filing said that since emerging from bankruptcy, Station has reduced its total debt by $450 million to $2 billion and invested $330 million to “maintain and enhance” its properties.
Standard & Poor’s Ratings Services also has reflected a favorable view of Station’s finances, boosting its outlook on Station from stable to positive this year.
“The outlook revision reflects our expectation that Station Casinos’ credit measures will continue to improve through 2016, as a result of continued good operating performance coupled with debt repayment,” Standard & Poor’s credit analyst Stephen Pagano wrote at the time.