On January 28, the same Fidelity fund filed a new quarterly report and presented the values of its holdings as of November 30. The value of its Station Casinos stake dropped by over 5%. The implied valuation of Station Casinos would have thus dropped to $1.06 billion at the end of November.
https://www.rrripodissected.org/wp-content/uploads/scalpel-money_880x400.jpg400880Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-02-17 17:35:362018-06-07 18:12:16An Update on Station Casinos Valuation, as Implied by Fidelity Filings
Deutsche Bank announced last Thursday that the Station Casinos (Red Rock Resorts) IPO had been postponed. Will the Fertitta family and other insiders seek other ways to fund the $460-million Fertitta Entertainment deal even before the IPO goes to market? Will the terms of the IPO be modified?
https://www.rrripodissected.org/wp-content/uploads/golfcartstuck_Small.jpg565849Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-02-02 21:16:062016-04-10 03:39:41The IPO Is Postponed, Per Deutsche Bank
There was a surprise in the company’s third quarter financial statements with respect to cash distributions to members: Station Casinos’ third-quarter cash payouts to its owners was were approximately 118% of its EBITDA.
https://www.rrripodissected.org/wp-content/uploads/wait-sign_Small-e1454447827910.jpg441640Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-01-25 17:18:232016-02-12 22:23:36Will Station Casinos’ Fourth-Quarter Financials Surprise Like They Did in the Third Quarter?
The IPO’s tax receivable agreement requires Red Rock to pay out a substantial (and potentially unlimited) amount of cash to the pre-IPO owners for years after the IPO. TRA payments will not be subject to the approval of outside investors, can negatively affect free cash flow (not EBITDA) and Class A stockholders’ equity, and will be in addition to quarterly tax distributions payable to the pre-IPO owners.
https://www.rrripodissected.org/wp-content/uploads/Tilted-scale_Small.jpg565849Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-01-22 15:00:312016-04-10 03:42:29The Tax Receivable Agreement of the Red Rock Resorts IPO
According to Red Rock Resorts, Inc.’s Jan. 14, 2016, S-1/A filing, “an airplane will be transferred by Fertitta Entertainment to one or more of its members or their affiliates prior to the consummation of the Fertitta Entertainment Acquisition.” No further details about this transfer are disclosed in the company’s IPO filings.
https://www.rrripodissected.org/wp-content/uploads/jet-engine_Small.jpg565849Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-01-19 18:00:122016-03-11 00:40:55The IPO and the Fertitta Entertainment Airplane
Corporate governance in an IPO reflects the value current owners place on investment from outside investors. Red Rock’s current owners have chosen second-class status for new public investors in their company. Will you choose to be a second-class shareholder?
https://www.rrripodissected.org/wp-content/uploads/2016-04-01-Certificate-Second-Class-Stamp_FINAL_880.jpg586880Ken Liu/wp-content/uploads/stationipodissected7.pngKen Liu2016-01-19 17:00:422016-04-10 03:43:39Do You Want to Be a Second-Class Shareholder of Red Rock Resorts?
An Update on Station Casinos Valuation, as Implied by Fidelity Filings
/in UpdatesOn January 28, the same Fidelity fund filed a new quarterly report and presented the values of its holdings as of November 30. The value of its Station Casinos stake dropped by over 5%. The implied valuation of Station Casinos would have thus dropped to $1.06 billion at the end of November.
The IPO Is Postponed, Per Deutsche Bank
/in UpdatesDeutsche Bank announced last Thursday that the Station Casinos (Red Rock Resorts) IPO had been postponed. Will the Fertitta family and other insiders seek other ways to fund the $460-million Fertitta Entertainment deal even before the IPO goes to market? Will the terms of the IPO be modified?
Will Station Casinos’ Fourth-Quarter Financials Surprise Like They Did in the Third Quarter?
/in UpdatesThere was a surprise in the company’s third quarter financial statements with respect to cash distributions to members: Station Casinos’ third-quarter cash payouts to its owners was were approximately 118% of its EBITDA.
The Tax Receivable Agreement of the Red Rock Resorts IPO
/in UpdatesThe IPO’s tax receivable agreement requires Red Rock to pay out a substantial (and potentially unlimited) amount of cash to the pre-IPO owners for years after the IPO. TRA payments will not be subject to the approval of outside investors, can negatively affect free cash flow (not EBITDA) and Class A stockholders’ equity, and will be in addition to quarterly tax distributions payable to the pre-IPO owners.
The IPO and the Fertitta Entertainment Airplane
/in UpdatesAccording to Red Rock Resorts, Inc.’s Jan. 14, 2016, S-1/A filing, “an airplane will be transferred by Fertitta Entertainment to one or more of its members or their affiliates prior to the consummation of the Fertitta Entertainment Acquisition.” No further details about this transfer are disclosed in the company’s IPO filings.
Do You Want to Be a Second-Class Shareholder of Red Rock Resorts?
/in UpdatesCorporate governance in an IPO reflects the value current owners place on investment from outside investors. Red Rock’s current owners have chosen second-class status for new public investors in their company. Will you choose to be a second-class shareholder?