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) June 6, 1996
Stratosphere Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-12030 88-0292318
(Commission File Number) (IRS Employer Identification No.)
2000 Las Vegas Boulevard, Las Vegas, Nevada 89104
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (702) 385-7727
Not Applicable
(Former name or former address, if changed since last report)
Page 1 of 4
Exhibit Index at Page 3
1 of 4 Pages
ITEM 5. OTHER EVENTS.
The Registrant's Press Release dated June 6, 1996, which is filed as
Exhibit 99.1 to this Form 8-K, is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENT, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits
99.1 Press Release dated June 6, 1996.
SIGNATURE
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 thereunto duly authorized.
STRATOSPHERE CORPORATION
Date: June 7, 1996 By: /s/ Thomas A. Lettero
---------------------
Name:Thomas A. Lettero
Title: Chief Financial Officer
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION PAGE
99.1 Press Release................................................ 4
Exhibit 99.1
Contact: Thomas A. Lettero
Chief Financial Officer
Stratosphere Corporation
702-383-4719
FOR IMMEDIATE RELEASE:
THURSDAY, JUNE 6, 1996
STRATOSPHERE CORP. REPORTS FIVE-WEEK RESULTS
LAS VEGAS, Nev., (Thursday, June 6, 1996) Stratosphere Corporation,
(NASDAQ:TOWV) whose Las Vegas casino, hotel, and tower opened on April 29,1996,
announced the following results for its first five weeks of operation. Casino
revenue was $7.7 million, total operating revenue was $19.1 million, and the
number of visitors to the top of the Stratosphere Tower was 444,715. In
addition, room occupancy averaged 80 percent and the average daily room rate per
room was $71.
Dave Wirshing, President of Stratosphere said, "These results are below the
company's expectations principally due to the project not yet being fully
completed. With the addition of 1,000 hotel rooms and suites, the opening of the
retail shops, and the completion of other amenities, scheduled to open in the
first quarter of 1997, as well as aggressive marketing programs, we anticipate
that visitation to the facility should increase and overall operating results
should improve."
The company also announced that Grand Casinos, Inc. will loan Stratosphere
Corporation $48.5 million pursuant to a previously agreed upon completion
guaranty. The majority of the funds advanced under the guaranty have been used
to pay for enhancements to the original scope of the project. Grand Casinos
currently owns approximately 42 percent of Stratosphere Corporation and had
agreed to provide a completion guaranty as part of Stratosphere's March 1995
$203-million First Mortgage Note offering. Grand Casinos' loan will bear
interest at 14.25 percent and will be unsecured and subordinate to the First
Mortgage Notes.
Stratosphere Corp. is an integrated casino/hotel/entertainment complex located
at the north end of the Las Vegas Strip. The complex is centered around the
Stratosphere Tower, the tallest free-standing observation tower in the U.S.
