Station Casinos LLC Announces Proposed Offering of Senior Notes

Rhea-AI Summary

Red Rock Resorts, Inc. (NASDAQ: RRR) announced that Station Casinos LLC plans to offer $500 million in senior notes due 2031. Proceeds will be used for a $344 million distribution to LLC interest holders, funding a $350 million equity tender offer for Class A Common Stock, covering transaction costs, and general corporate purposes. The notes will be sold to qualified institutional buyers and are not registered under the Securities Act. The Company warns that actual results may differ from expectations.

Positive

• Proceeds from the offering will support a $344 million distribution to LLC interest holders.
• Funding for a $350 million tender offer may enhance shareholder value.

Negative

• The offering may lead to potential dilution for existing shareholders.
• Dependence on market conditions poses risk to successful completion of the offering.

LAS VEGAS, Nov. 10, 2021 /PRNewswire/ -- Station Casinos LLC (the "Company"), a consolidated subsidiary of Red Rock Resorts, Inc. (NASDAQ: RRR), announced today that it intends to offer, subject to market and other conditions, $500 million aggregate principal amount of senior notes due 2031 (the "Notes") in a private placement.

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 (the "Equity Tender"), (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., a holding company that owns an indirect equity interest in and manages the 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

View original content:https://www.prnewswire.com/news-releases/station-casinos-llc-announces-proposed-offering-of-senior-notes-301421145.html

SOURCE Red Rock Resorts, Inc.

FAQ

What is the purpose of the $500 million senior notes offering by RRR?

The offering aims to fund a $344 million distribution to LLC interest holders, a $350 million equity tender offer, cover transaction costs, and for general corporate purposes.

When are the senior notes due for Red Rock Resorts, Inc.?

The senior notes are due in 2031.

How will the offering affect shareholders of RRR?

The offering could result in potential dilution of existing shareholder value, depending on market conditions.

Who can purchase the senior notes being offered by Station Casinos?

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

What risks are associated with the senior notes offering by RRR?

Actual results may differ from expectations due to market conditions affecting the completion of the offering.