Boyd Gaming Completes $380 Million Purchase of Aliante Casino Hotel
Posted on: September 30, 2016, 03:00h.
Last updated on: September 30, 2016, 11:20h.
Boyd Gaming, the Las Vegas casino and hospitality company, has completed its $380 million acquisition of the Aliante Casino and Hotel in North Las Vegas.
Boyd is back on the offensive after selling off its 50 percent stake in the Borgata Hotel Casino to MGM Resorts on August 1.
Opened in 2008, Aliante is located about 13 miles north of the main Strip in Las Vegas on the outskirts of the city’s boundaries. The resort was constructed at a cost of $662 million with the idea of catering to racing fans visiting the nearby Las Vegas Motor Speedway.
But just three years after its opening, Aliante was handed over to its creditors after Station Casinos filed for bankruptcy. Station Casinos is the gambling arm of billionaires Frank III and Lorenzo Fertitta’s business empire.
Aliante was passed to nine banks and three private equity firms that were owed $378 million at the time. The financiers created an operating company to manage the resort in the interim, and during that period sought a new buyer.
Boyd Gaming emerged, and made the creditors whole plus $2 million. The company says it has no plans to renovate or modify Aliante, as the resort is reportedly turnkey ready in Boyd’s eyes.
Boyd owns 10 casinos in the Las Vegas area, as well as casinos in Louisiana, Indiana, Iowa, Mississippi, Kansas, and Illinois.
North Vegas Optimism
Anyone who has visited the Las Vegas Strip knows it’s not the most relaxing destination in the world. Visitors can find tranquility in the resort spas, but outside, the hustle and bustle party atmosphere doesn’t exactly lend to rest and relaxation.
North Las Vegas can still offer the peace and calm many desire when traveling to the Mojave Desert. For Vegas residents, North Vegas is often where the locals play.
Boyd Gaming CEO Keith Smith is determined to make North Vegas more desirable for both locals and tourists.
“As the premier gaming asset in North Las Vegas, Aliante provides a tremendous opportunity to participate in the long-term growth of the northern part of the Las Vegas Valley,” Smith said in a press release. “We see a bright future ahead for Aliante.”
Just two months ago, Boyd sold its ownership in Atlantic City’s Borgata to MGM for $900 million. The move was to pay down debt and for “general corporate purposes.”
Shareholders at the time reacted negatively to Boyd selling its ownership in the most profitable casino in New Jersey. Traded on NASDAQ, Boyd shares went from $19.61 on Friday, July 29, to $18.40 the week following the Borgata selloff.
Investors are moderately enthused about the Aliante purchase.
There was more buying than selling of Boyd Gaming this week. Shares have gone from $18.84 to over $19.60.
Boyd’s net cashing from the Borgata came in around $589 million after paying its share of the resort’s outstanding liabilities. The company now moves forward with Aliante and roughly $209 million leftover in the bank.
Aliante, of course, won’t come close to producing the revenues Borgata does in Atlantic City, but Boyd apparently believes the resort better positions itself for growth.
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