Station Casinos suitor still pursuing buyout

LAS VEGAS ? Boyd Gaming Corp. said Monday that it remains committed to pursuing a deal to acquire some or all of the assets of Station Casinos Inc., even after the rival regional casino operator turned down its buyout proposal.

In February, Boyd said it was willing to pay $950 million for most of Station?s assets, except for those secured by certain loans.

But last week, Station said it was not interested in the buyout plan and instead extended its deadline to work through a plan to restructure its debt. Station plans to swap high-cost debt for low-cost debt and a $244 million capital infusion through a prepackaged bankruptcy filing.

Station Casinos is bankrolling plans to build a casino resort on the western edge of Rohnert Park with the Federated Indians of Graton Rancheria.

In a statement on Monday, Boyd said Station has not held any discussions with the company or provided it with the necessary information to create a binding offer.

?Despite Station?s letter, Boyd Gaming remains committed to pursuing a transaction to acquire some or all of the assets of Station, and is prepared to work with Station in a timely fashion to prepare a formal proposal,? Boyd said.

Boyd said it has enough liquidity under its credit facility to finance a cash transaction and does not expect that an amendment to the facility would be necessary. The company also believes it could obtain regulatory and governmental approvals.

?Boyd Gaming continues to believe the proposal outlined in its February 23, 2009 letter offers a superior recovery to creditors when compared to the current restructuring offer Station has proposed,? Boyd said.

Boyd Gaming shares jumped 24 cents, or 7.7 percent, to $3.34 in morning trading. The stock has traded between $2.81 and $21.65 during the past 52 weeks.