UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 1, 2016
|
Station Casinos LLC |
|
Red Rock Resorts, Inc. | ||||||||
|
(Exact name of registrant as specified in its charter) |
|
(Exact name of registrant as specified in its charter) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Nevada |
|
000-54193 |
|
27-3312261 |
|
Delaware |
|
001-37754 |
|
47-5081182 |
|
(State or other |
|
(Commission File |
|
(IRS Employer |
|
(State or other |
|
(Commission File |
|
(IRS Employer |
1505 South Pavilion Center Drive, Las Vegas, Nevada 89135
(Address of principal executive offices)
Registrant’s telephone number, including area code: (702) 495-3000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Completion of Acquisition or Disposal of Assets.
On October 1, 2016, Station Casinos LLC (“Station”) completed its previously announced acquisition (the “Acquisition”) of the outstanding limited partnership interests of FP Holdings, L.P. (“FP Holdings”) and limited liability company interests of Fiesta ParentCo, L.L.C. and FP HoldCo, L.L.C. (collectively, the “Purchased Companies”), which own and operate the Palms Casino Resort (“Palms”) in Las Vegas, Nevada.
The Acquisition was made pursuant to a purchase agreement (the “Purchase Agreement”), dated as of May 10, 2016 as amended on September 30, 2016, by and among FP VoteCo, L.L.C., FP ParentCo, L.P. (the “Sellers”), FP Holdings, and Station. As a result of the Acquisition, the Purchased Companies will be wholly-owned subsidiaries of Station.
The Palms is a resort-style casino and hotel situated in Las Vegas, Nevada and offering premium lodging accommodations, gaming, dining, and entertainment. Station acquired Palms for $312.5 million, increased by the estimated working capital adjustment and decreased for debt outstanding at closing, transaction expenses and certain other liabilities (for total estimated net cash consideration of $316.7 million).
The foregoing description of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Purchase Agreement, a copy of which is filed as Exhibit 10.7 to Station’s Quarterly Report on Form 10-Q filed August 15, 2016, together with the amendment to the Purchase Agreement, which is filed herewith as Exhibit 2.2, each of which are incorporated herein in their entirety by reference.
Item 7.01. Regulation FD Disclosure.
On October 3, 2016, Station issued a press release announcing the closing of the Acquisition. The press release is attached hereto as Exhibit 99.1 and is incorporated herein in its entirety by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
|
Exhibit Number |
|
Description |
|
2.1 |
|
Interest Purchase Agreement dated as of May 10, 2016 by and among FP Holdings, L.P., FP VoteCo, L.L.C., FP ParentCo, L.P. and Station Casinos LLC, a copy of which is filed as Exhibit 10.7 to Station’s Quarterly Report on Form 10-Q filed August 15, 2016, is incorporated herein in its entirety by reference. |
|
|
|
|
|
2.2 |
|
Amendment to Interest Purchase Agreement, dated as of September 30, 2016, by and among FP Holdings, L.P, FP VoteCo, L.L.C., FP ParentCo, L.P., and Station Casinos LLC. |
|
|
|
|
|
99.1 |
|
Press Release |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 3, 2016
|
Station Casinos LLC Red |
|
Rock Resorts, Inc. | ||
|
|
|
| ||
|
|
|
| ||
|
/s/ Marc J. Falcone |
|
/s/ Marc J. Falcone | ||
|
By: |
Marc J. Falcone |
|
By: |
Marc J. Falcone |
|
|
Executive Vice President, Chief Financial Officer and Treasurer |
|
|
Executive Vice President, Chief Financial Officer and Treasurer |
EXHIBIT INDEX
|
Exhibit Number |
|
Description |
|
2.1 |
|
Interest Purchase Agreement dated as of May 10, 2016 by and among FP Holdings, L.P., FP VoteCo, L.L.C., FP ParentCo, L.P. and Station Casinos LLC, a copy of which is filed as Exhibit 10.7 to Station’s Quarterly Report on Form 10-Q filed August 15, 2016, is incorporated herein in its entirety by reference. |
|
|
|
|
|
2.2 |
|
Amendment to Interest Purchase Agreement, dated as of September 30, 2016, by and among FP Holdings, L.P, FP VoteCo, L.L.C., FP ParentCo, L.P., and Station Casinos LLC. |
|
|
|
|
|
99.1 |
|
Press Release |
Exhibit 2.2
AMENDMENT TO INTEREST PURCHASE AGREEMENT
This AMENDMENT TO INTEREST PURCHASE AGREEMENT (this “Amendment”) is made and entered into as of September 30, 2016, by and among FP Holdings, L.P., a Nevada limited partnership (the “Company”), FP VoteCo, L.L.C., a Delaware limited liability company (“VoteCo”) and sole member of Fiesta ParentCo, L.L.C., a Delaware limited liability company (“GP”), FP ParentCo, L.P., a Delaware limited partnership (“Parent” and, together with VoteCo, the “Sellers”), and Station Casinos LLC, a Nevada limited liability company (“Buyer”).
WHEREAS, the parties hereto entered into that certain Interest Purchase Agreement dated as of May 10, 2016 (the “Interest Purchase Agreement”). Capitalized terms used herein without definitions shall have the meanings ascribed thereto in the Interest Purchase Agreement; and
WHEREAS, the parties desire to amend the Interest Purchase Agreement to provide that Cash will be included in the calculation of Adjusted Working Capital and to provide that the Closing will occur at 12:01 a.m. on October 1, 2016.
NOW, THEREFORE, the parties hereto, in consideration of the premises and of the mutual representations, warranties and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, agree as follows:
1. Amendments.
(a) Section 1.3 of the Interest Purchase Agreement is hereby amended and restated to read in full as follows:
“Section 1.3 Purchase Price. As used herein, the aggregate purchase price for the Purchased Interests (the “Purchase Price”), shall be an amount equal to (a) the Base Purchase Price, plus or minus (as applicable) (b) the Estimated Working Capital Adjustment, minus (c) the Selling Expenses, minus (d) the Closing Escrow Funds, minus, (e) the Specified Matter 1 Escrow Fund, minus (f) the Payoff Amount, minus (g) the Pension Liability, minus (h) all Indebtedness outstanding at Closing, other than the Payoff Amount. Buyer shall pay the Purchase Price and the other payments contemplated hereby as provided in Section 1.6(a).”
(b) Section 1.5 of the Interest Purchase Agreement is hereby amended and restated to read in full as follows:
“Section 1.5 Closing. Unless this Agreement is earlier terminated pursuant to Article VII hereof, subject to the satisfaction or waiver of all conditions set forth in Article VI hereof (other than those conditions intended to be satisfied or waived at the Closing), the closing of the transactions contemplated by this Agreement, including the purchase and sale of the Purchased Interests (the “Closing”), shall take place at 12:01 a.m. on October 1, 2016 (such time, the “Closing Time” and such date the “Closing Date”).”
(c) Section 1.6 of the Interest Purchase Agreement is hereby amended and restated to read in full as follows: Closing Transactions
“Section 1.6. Preclosing and Closing Transactions.
(a) Payments. Subject to the satisfaction or waiver of all conditions set forth in Article VI hereof (other than those conditions intended to be satisfied or waived), the following payments shall be made by Buyer no later than 10:00 a.m. pacific time on September 30, 2016:
(i) Buyer shall pay the Purchase Price (less the Deposit) to the Sellers by wire transfer of immediately available funds to the account(s) designated in writing by the Sellers at least two (2) Business Days prior to the Closing Date.
(ii) Buyer shall remit the Closing Escrow Funds by wire transfer of immediately available funds to the account(s) designated in the Closing Escrow Agreement.
(iii) Buyer shall remit the Specified Matter 1 Escrow Fund by wire transfer of immediately available funds to the account(s) designated in the Specified Matter 1/2 Escrow Agreement.
(iv) In accordance with the Payoff Letter, Buyer will repay, or cause to be repaid, on behalf of the Purchased Companies, the Payoff Amount by wire transfer of immediately available funds to the account(s) designated in the Payoff Letter(s).
(v) Buyer shall pay to the applicable Persons payment of the Selling Expenses, by wire transfer of immediately available funds to the account(s) designated by such Persons in the invoices delivered by the Sellers to Buyer pursuant to Section 1.6(b)(vi).
(b) Deliveries. The following documents will be executed and delivered by Buyer and the Sellers, as applicable, at or prior to 10:00 a.m. pacific time on September 30, 2016:
(i) Buyer and the Sellers shall execute an escrow agreement in the form attached hereto as Exhibit B (the “Closing Escrow Agreement”).
(ii) Buyer and the Sellers shall execute the Specified Matter 1/2 Escrow Agreement.
(iii) Buyer shall deliver to the Sellers the certificates required by Sections 6.3(a) and (b) hereof.
(iv) The Sellers shall deliver, or cause to be delivered, to Buyer the certificates required by Sections 6.2(a) and (b) hereof.
(v) Buyer shall deliver to the Sellers evidence reasonably satisfactory to the Sellers that Buyer has obtained all Gaming Approvals required to consummate the transactions contemplated hereby.
(vi) The Sellers shall deliver to Buyer invoices in respect of the Selling Expenses.
(vii) The Sellers shall have delivered or cause to be delivered the Payoff Letter as contemplated by Section 5.12(a) and releases of all Liens and other security interests securing the Indebtedness in each case as described in the Payoff Letter.
(viii) Each Seller shall deliver to Buyer a certification of its status as a non-foreign person in the form attached hereto as Exhibit D (the “FIRPTA Certificate”) in accordance and compliance with Treasury Regulations Section 1.1445-2(b)(2).
(ix) Each Seller shall have executed and delivered an assignment agreement in the form attached hereto as Exhibit E (each, an “Assignment Agreement”) assigning such Seller’s interest in the Purchased Interests to Buyer free and clear of all Encumbrances effective as of the Closing Time.
(x) Each of the Sellers and Buyer shall deliver evidence reasonably satisfactory to the Title Company regarding due organization and the due authorization of the transactions contemplated by this Agreement, to the extent required by the Title Company.
(xi) The Sellers shall deliver such customary affidavits as the Title Company may reasonably require in order to issue the Title Policy in accordance with the terms hereof.
(xii) Sellers shall deliver evidence of the resignation or removal, effective as of the Closing Date, of each director of the Company, unless otherwise designated by Buyer in advance no less than five (5) Business Days prior to the Closing Date.
(xiii) The Sellers and Buyer shall deliver to the Escrow Agent a joint written instruction instructing the Escrow Agent to release (1) the Deposit to the Sellers and (2) the interest accrued on the Deposit to Buyer, in each case in accordance with the Deposit Escrow Agreement.
(c) Transfer of Possession. To the extent required by applicable Gaming Laws or Gaming Authorities, the Sellers and Buyer shall prepare a detailed closing memorandum and submit it to the applicable Gaming Authorities with sufficient time to allow their review and approval and completion of the items set forth in such closing memorandum prior to the Closing Date.”
(d) The definition “Adjusted Working Capital” contained in Section 9.1 of the Interest Purchase Agreement is hereby amended and restated to read in full as follows:
““Adjusted Working Capital” means, as of a certain date, the (a) current assets of the Purchased Companies as of such date, including Cash (excluding any such assets that constitute Excluded Assets), less (b) current Liabilities of the Purchased Companies as of such date (including any accrued and unpaid Taxes and excluding any such Liabilities that constitute (x) the current portion of any Indebtedness included in the Payoff Amount, (y) the current portion of any Indebtedness outstanding at Closing that is deducted in calculating the Purchase Price pursuant to Section 1.3 or (z) Selling Expenses), in each case (i) as determined on a consolidated basis using and applying the same accounting principles, practices, procedures, policies and methods used and applied in the preparation of the Interim Financial Statements as modified as set forth in Section 5.1(m) of the Disclosure Schedules and (ii) without duplication.”
(e) For purposes of clarity, the parties agree that cash payments in respect of Specified Matter 1 under any insurance policy or pursuant to any settlement, award or other final, non-appealable legally binding resolution of Specified Matter 1 distributed by the Company following the date of the Interest Purchase Agreement and prior to the Closing shall constitute Third Party Proceeds for purposes of Section 5.17 of the Interest Purchase Agreement.
(f) Except as expressly amended hereby, the Agreement shall remain in full force and effect.
2. Miscellaneous. This Amendment and the transactions contemplated hereby, and all disputes between the parties under or related to this Amendment or the Agreement or the facts and circumstances leading to their execution, whether in contract, tort or otherwise, shall be governed by and construed in accordance with the Laws of the State of New York, applicable to contracts executed in and to be performed entirely within the State of New York, without regard to the conflicts of laws principles thereof to the extent that the Laws of another jurisdiction would apply as a result of the application thereof.
(a) Headings. The headings contained in this Amendment are for reference purposes only and shall not affect in any way the meaning or interpretation of this Amendment.
(b) Severability. If any term or other provision of this Amendment is invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Amendment shall nevertheless remain in full force and effect, and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.
(c) Counterparts. This Amendment may be executed in any number of counterparts and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or PDF file (portable document format file) shall be effective as delivery of a manually executed counterpart of this Amendment.
[SIGNATURE PAGES FOLLOW]
IN WITNESS WHEREOF, the undersigned have caused this Amendment to be signed by their respective duly authorized officers as of the date first written above.
|
|
COMPANY: | |
|
|
| |
|
|
FP HOLDINGS, L.P. | |
|
|
| |
|
|
By: FP ParentCo, L.L.C., its general partner | |
|
|
| |
|
|
By: FP VoteCo, L.L.C., its sole member | |
|
|
| |
|
|
| |
|
|
By: |
|
|
|
|
Name: |
|
|
|
Title: |
|
|
| |
|
|
| |
|
|
SELLERS: | |
|
|
| |
|
|
FP VOTECO, L.L.C. | |
|
|
| |
|
|
| |
|
|
By: |
|
|
|
|
Name: |
|
|
|
Title: |
|
|
| |
|
|
| |
|
|
FP PARENTCO, L.P. | |
|
|
| |
|
|
By: FP VoteCo, L.L.C., its general partner | |
|
|
| |
|
|
| |
|
|
By: |
|
|
|
|
Name: |
|
|
|
Title: |
|
|
| |
|
|
| |
|
|
BUYER: | |
|
|
| |
|
|
STATION CASINOS LLC | |
|
|
| |
|
|
| |
|
|
By: |
|
|
|
|
Name: |
|
|
|
Title: |
[Amendment to Interest Purchase Agreement]
Exhibit 99.1
Red Rock Resorts, Inc. Announces Closing of the Acquisition of the Palms Casino Resort
LAS VEGAS—(BUSINESS WIRE) (NASDAQ: RRR)— Oct. 3, 2016—Red Rock Resorts, Inc. (“Red Rock Resorts” “we” or the “Company”) today announced that Station Casinos LLC has completed its acquisition of the Palms Casino Resort (“The Palms”) in Las Vegas, Nevada.
With the acquisition of the Palms, Station Casinos now has twenty properties located strategically across the Las Vegas valley and is uniquely positioned to benefit from strong economic trends and record visitation levels currently being experienced in the market. The Palms is located adjacent to the Las Vegas Strip and provides Red Rock Resorts with a leading gaming asset in one of the most underpenetrated areas of our Boarding Pass program as well as the opportunity to appeal to out of town guests.
“We are excited to welcome the talented members of the Palms team to the Station Casinos family. The Palms outstanding location, premium amenities and highly recognizable brand will allow us to provide a new level of excitement for local and visiting guests to Las Vegas,” said Marc Falcone, Executive Vice President, Chief Financial Officer and Treasurer of Red Rock Resorts.
About Red Rock Resorts
Red Rock Resorts manages and owns a significant indirect equity interest in Station Casinos. Station Casinos is the leading provider of gaming and entertainment to the residents of Las Vegas, Nevada. Station Casinos’ properties, which are located throughout the Las Vegas valley, are regional entertainment destinations and include various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering. Station Casinos owns and operates Red Rock Casino Resort Spa, Green Valley Ranch Resort Spa Casino, Palms Casino Resort, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Texas Station Gambling Hall & Hotel, Fiesta Rancho Casino Hotel, Fiesta Henderson Casino Hotel, Wildfire Rancho, Wildfire Boulder, Wild Wild West Gambling Hall & Hotel, Wildfire Sunset, Wildfire Valley View, Wildfire Anthem and Wildfire Lake Mead. Station Casinos also owns a 50% interest in Barley’s Casino & Brewing Company, Wildfire Casino & Lanes and The Greens. In addition, Station Casinos is the manager of Graton Resort & Casino in northern California and owns a 50% interest in MPM Enterprises, L.L.C., which is the manager of Gun Lake Casino in southwestern Michigan.
Forward Looking Statements
This press release contains certain forward-looking statements with respect to the Company and its subsidiaries which involve risks and uncertainties that cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied herein. Such risks and uncertainties include, but are not limited to; the Company’s ability to successfully integrate the Palms with our existing properties or realize expected synergies; the strength and sustainability of the recovery from the recent economic downturn, and the effects of the economy generally, and in particular in Nevada, on consumer spending and our business; the effects of intense competition that exists in the gaming industry; the risk that new gaming licenses or gaming activities, such as expansion of internet gaming, are approved and result in additional competition; our substantial outstanding indebtedness and the effect of our significant debt service requirements on our operations and ability to compete; the risk that we will not be able refinance our outstanding indebtedness or obtain necessary capital to finance any development or investment projects that we may decide to undertake in the future; the impact of extensive regulation from gaming and other government authorities on our ability to operate our business and the risk that regulatory authorities may revoke, suspend, condition or limit our gaming or other licenses, impose substantial fines or take other actions that adversely affect us; risks associated with changes to applicable gaming and tax laws that could have a material adverse effect on our financial condition; the impact of general business conditions including competitive practices, changes in customer demand and the cyclical nature of the gaming and hospitality business in general, on our business and results of operations; the impact of volatility in the capital markets,; adverse outcomes of legal proceedings and the development of, and changes in, claims or litigation reserves; risks, such as cost overruns and construction delays, associated with development, construction and management of new projects or the expansion of existing facilities; and other risks described in the filings of the Company with the Securities and Exchange Commission.
CONTACT:
Red Rock Resorts
Daniel Foley
Vice President, Finance & Investor Relations
(702) 495-3683
or
Lori Nelson
Vice President of Corporate Communications
(702) 495-4248