Red Rocks Resorts has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $100 million, although this number is usually just a placeholder. The company intends to list on the Nasdaq under the symbol RRR.
The underwriters for the offering are Deutsche Bank, JPMorgan, Merrill Lynch and Goldman Sachs.
This leading gaming, development and management company operates 21 strategically located casino and entertainment properties. It has developed over $5 billion of regional gaming and entertainment destinations in multiple jurisdictions. Additionally, Red Rock Resorts is an established leader in Native American gaming, managing facilities in northern California and western Michigan.
The company began operations in 1976 with a 5,000-square-foot casino featuring 100 slot machines and has grown through development and acquisitions to become a premier provider of gaming and entertainment for residents of the Las Vegas regional market and visitors.
Its Las Vegas portfolio includes nine major gaming and entertainment facilities and 10 smaller casinos (three of which are 50% owned), offering roughly 19,500 slot machines, 300 table games and 4,000 hotel rooms. These Las Vegas properties are broadly distributed throughout the market and easily accessible, with over 90% of the Las Vegas population located within five miles of one of its gaming facilities.
Most of the major properties are master-planned for expansion, enabling it to incrementally expand facilities as demand dictates. The company also controls six highly desirable gaming-entitled development sites, consisting of approximately 310 acres in Las Vegas and Reno, Nev.
In terms of its finances Red Rocks detailed:
- Further strengthened the capital structure by reducing total debt by $440 million to $2.0 billion as of December 31, 2015, (excluding a $114.6 million non-recourse land loan) from roughly $2.45 billion.
- Invested $380 million in capital improvements to maintain and enhance its properties.
- For the year ended December 31, 2015, compared to the year ended December 31, 2014, adjusted EBITDA increased 13.1% and adjusted EBITDA margin improved by 250 basis points to 33.4%, while income from continuing operations increased by 9.4%.
The company intends to use the net proceeds from the offering to pay a portion of the purchase price for the Fertitta Entertainment Acquisition, acquire newly issued LLC units in Station Holdco and purchase LLC units from certain of its existing owners.
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
