Station Casinos LLC Announces Pricing of Senior Notes Offering

Rhea-AI Summary

Red Rock Resorts, Inc. (NASDAQ: RRR) announced that its subsidiary, Station Casinos LLC, has priced a $500 million offering of senior notes due 2031 with a 4.625% interest rate. The offering is set to close on or around November 26, 2021. Proceeds from the notes will facilitate a distribution of approximately $344 million to LLC interest holders, fund a $350 million common stock buyback, and cover related fees and general corporate expenses. These notes will not be registered under the Securities Act and will be sold to qualified buyers in compliance with relevant regulations.

Positive

• Offering of $500 million in senior notes at a competitive interest rate of 4.625%.
• Approximately $344 million will be distributed to LLC interest holders, potentially increasing shareholder value.
• The buyback of up to $350 million in Class A Common Stock could enhance shareholder returns.

Negative

• The offering carries inherent risks associated with senior notes and could impact the company's financial leverage.

LAS VEGAS, Nov. 10, 2021 /PRNewswire/ -- Station Casinos LLC (the "Company"), a consolidated subsidiary of Red Rock Resorts, Inc. (NASDAQ: RRR), announced today it priced an offering of $500 million in aggregate principal amount of senior notes due 2031 (the "Notes") at an interest rate of 4.625% per annum and an issue price equal to 100% of the principal amount of the Notes  The offering is expected to close on or about November 26, 2021, subject to customary closing conditions.

The Company intends to use the net proceeds of the offering, together with borrowings under the Company's revolving credit facility, (i) to make a distribution of approximately $344 million to holders of the Company's outstanding limited liability company interests, including the Company's parent, Red Rock Resorts, Inc., (ii) to pay the purchase price for shares of Class A Common Stock tendered in RRR's offer to purchase up to $350 million of its Class A Common Stock, (iii) to pay fees and costs associated with such transactions and (iv) for general corporate purposes.

The Notes will be offered and sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to persons outside the United States in accordance with Regulation S under the Securities Act. The Notes will not be registered under the Securities Act and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities of the Company, nor shall there be any offer, solicitation or sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.

FORWARD-LOOKING STATEMENTS

Statements contained in this news release that state the Company's or management's intentions, expectations or predictions of the future are forward-looking statements. Specifically, the Company cannot assure you that the proposed transactions described above will be consummated on the terms currently contemplated, if at all.  Actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially is contained from time to time in the reports filed by Red Rock Resorts, Inc., the Company's parent company, with the Securities and Exchange Commission, including but not limited to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 and Annual Report on Form 10-K for the year ended December 31, 2020.  The Company disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.

INVESTORS:
Stephen L. Cootey
Stephen.Cootey@redrockresorts.com
(702) 495-4214

MEDIA:
Michael J. Britt
Michael.Britt@redrockresorts.com
(702) 495-3693

Contact:
Investor Relations
(702) 495-3550

View original content:https://www.prnewswire.com/news-releases/station-casinos-llc-announces-pricing-of-senior-notes-offering-301421725.html

SOURCE Red Rock Resorts, Inc.

FAQ

What was announced by Red Rock Resorts on November 10, 2021?

Red Rock Resorts announced a $500 million senior notes offering by its subsidiary, Station Casinos LLC.

What is the interest rate for the senior notes issued by Station Casinos LLC?

The senior notes have an interest rate of 4.625% per annum.

When is the closing date for the senior notes offering by RRR?

The offering is expected to close on or around November 26, 2021.

How will the proceeds from the senior notes offering be used?

Proceeds will be used for distributions to LLC interest holders, stock buybacks, transaction fees, and general corporate purposes.

Who can purchase the senior notes issued by Station Casinos LLC?

The notes will be sold to qualified institutional buyers and persons outside the United States.