Iconic Stratosphere casino in Las Vegas changes hands

Carla Harmon
June 13, 2017

Golden will pay $781 million cash and about 4 million shares of its stock to American's owner, a real estate private equity fund managed by Goldman Sachs.

The Stratosphere Casino, Hotel & Tower is located on the North Las Vegas Strip. Since the announcement on 12 June, share prices for Golden Entertainment went up by $3.07, which was a just over an 18 percent increase and closed on $20.

Iconic Stratosphere casino in Las Vegas changes hands

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Golden expects to achieve approximately $18M of annual run-rate synergies post-closing.

"This is a transformational event for our Company, creating a significant gaming portfolio centered around Nevada-based casinos", Sartini said in a release. Lafitte Capital Management LP owned approximately 1.97% of Golden Entertainment worth $5,806,000 at the end of the most recent reporting period.

Once the sale is completed, Golden will operate over 15,800 slot machines, 114 table games and more than 5,100 hotel rooms across eight casino properties and nearly 1,000 distributed gaming locations including the largest branded tavern portfolio in Nevada. The company owns Gold Town in Pahrump, Pahrump Nugget in Lakeside and the Rocky Gap Casino Resort in Flintstone, Maryland. The Firm focuses on distributed gaming, including tavern gaming, and casino and resort operations. There is also a $100 million revolving credit which is part of the $1.1 billion loan that has been approved for Golden Entertainment to proceed with its proposed growth plans for the future.

News articles about Golden Entertainment (NASDAQ:GDEN) have trended somewhat positive this week, Alpha One Sentiment reports. The company will have about 16,000 slot machines under its control.

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