The Boyd Gaming Corporation has been able to make it through the current economic slowdown. They have been able to prosper and are actually looking to expand. It has been no secret that over the past year, Boyd Gaming Corporation has been publicly trying to acquire the casinos, properties, and assets held by Station Casinos. Boyd Gaming has sited their financial success and flexibility several times in an attempt to make a profitable bid for Stations Casinos. Their most recent bid came to about $2.35 billion in cash and absorbent of Station Casinos debt. For the price Boyd wants all the Station Casino properties, assets, and even some of the vacant land held by Station.
Recently Boyd Gaming Corporation announced that they have amended their agreement with the banks in an attempt to improve their financial flexibility. They are wishing to pursue “growth opportunities” which can translate to the Station Casinos. Chief Executive Officer for Boyd Gaming Corporation, Keith Smith, said, “This amendment was done with full consideration of our recently announced proposal to acquire the assets of Station Casinos.” This was not a move required by Boyd’s lenders, but it comes across as a positive step and a reaffirmation of Boyd Gaming’s commitment to growth. According to their website, boydgaming.com, they state, “Never content to rest upon our successes, we will continue to evolve and retain a position of leadership in our industry.”
The amended agreement will leave Boyd Gaming Corporation with close to $1 billion within Boyd’s credit facility. About $2 billion was available before the new agreement. The agreement will also offer a slower pace for the casino corporation to work down its debt ratio. They will work down to a 5.5 times cash flow from 7.25 times cash flow. This is good news for Boyd gaming as the lower ratio means it will be easier for the company to raise cash from lenders. If you haven’t noticed, Boyd Gaming Corporation is serious about acquiring Station Casinos and its assets. This is just the latest step they have taken to sure up their footing.
