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Off Strip Casino Sold For $400 Million?

Discussion in 'Misc. Vegas Chat' started by BlacklabberMike, Oct 4, 2014.

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  1. BlacklabberMike

    BlacklabberMike VIP Whale

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    Robin Leach posted on Twitter that a major off strip casino was sold Friday night for $400...
    speculation is The Rio... that price seems a little low for that property, though CET could use some cash right now.

    anyone hear anything?
    I sent a message to a guy a know that writes for the review journal to see what he knows.
     
  2. leo21

    leo21 VIP Whale

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    I think Rio could get more and I would be shocked if it sold for less than $600M. If it did, CET is worse off than people think. In this market, I can't think of two many other places that could generate $400m which could be on the market. I can't see anything else affiliated with a larger corp for sale so If it's not Rio, it must be an independent.
     
  3. merlin

    merlin VIP Whale

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    I'm pretty sure it was the wild, wild west casino, no doubt the hotel was part of the deal...it's a cash cow I've heard.:wink2:
     
  4. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    Be wary of the source. Not saying it didn't happen. Just be aware that Leach is notorious for making things up
     
  5. leo21

    leo21 VIP Whale

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    It's sucks he dropped that out of the blue a weekend. Most other bloggers will hold off reporting anything until Monday even if it's true. As for Wild Wild West, I can see how that could draw $400m but I would hope his readers would consider that misleading. No one would consider it a major property.
     
  6. BCMike

    BCMike VIP Whale

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    Robin Leach had the scoup on the Lions Share progressive so there's probably something behind it. I would find the price odd though if they did sell for $400 million since they were offered $450 by Penn about 4 years ago. Even in the Vegas market, I'd expect the prices to be higher now for properties than they were 4 years ago.

    Everything I'm reading on CZR's makes it seem like they are extremely close to some sort of bankruptcy. Some of the corporate maneuvers they've been doing to break off the more profitable casino's into a separate corporation..debt offerings etc. There's been some interesting research reports out the last few weeks by stock analysts as well.
     
  7. natedog666

    natedog666 17 and 20 Expert

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    Caesar's subordinated debt are at about 25 par value 100. Means the market thinks they will default soon on that debt.
     
  8. Tellafriend

    Tellafriend High-Roller

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    Caesars is or is about to be desperate, no doubt. So, perhaps they would sell the Rio at that price. But it would be a steal. It has to be worth a good deal more than 400 million. They have a separate, high end facility that by itself is likely worth 50 million.
     
  9. ruralhipster

    ruralhipster Low-Roller

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    Who is the buyer if indeed it is the Rio? The thing that makes sense to me would be if Pokerstars bought it with the rights to the WSOP brand.
     
  10. Kickin

    Kickin Flea

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    If this is about Rio keep in mind that Caesars wouldn't have much of a choice as to a sale price, especially with really sharp distressed specialists like Elliott, Appaloosa, and Oaktree across the table. During the infamous asset shuffle Rio and a bunch of other properties were put into a new property company and then pledged to a bond issued at the PropCo level to pay off debt at the operating company. The bondholders at the PropCo level would have the final say on any sale and could even force the sale through themselves, especially given that both the OpCo and the PropCo can be considered to be in technical default. Bondholders don't necessarily care about getting maximum value as long as they can cover their pledge.
     
  11. topcard

    topcard Older than the Stardust!

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    Hope it is the Rio...and that they keep the CW uniform & change the 6:5 blackjack to 3:2!
    :beer:
     
    Seems like forever from now, but the flights are booked, so it counts!
  12. breanna61

    breanna61 Super Moderator

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    I hope it is Rio too; Rio was wonderful when Marnell had it and really went downhill under CET. Would love to see a new owner bring it back!
     
  13. TIMSPEED

    TIMSPEED !địt mẹ!

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    I would think more like South Point, or M...doubt Rio would ONLY be $400M.
    Could be Hard Rock though?
     
    Palace Tower Suite!
  14. UKFanatic

    UKFanatic The Arbiter of Taste Caviar Kid

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    Was this sale ever confirmed? I just don't trust Robin Leach as a source and haven't heard anything about a sale other than what's in this thread. Anybody know anything more?
     
  15. BlacklabberMike

    BlacklabberMike VIP Whale

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    nah, go back to the the thong like they wore back in the day. but only for the females.
     
  16. dvandentop

    dvandentop VIP Whale

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    Interesting to find out who it is
     
  17. matguy

    matguy High-Roller

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    At this point I would assume it's nothing since nothing else seemed to come of it.
     
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