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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) March 26, 1997
STATION CASINOS, INC.
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(Exact name of registrant as specified in its charter)
Nevada
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(State or other jurisdiction of incorporation)
000-21640 88-0136443
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(Commission File Number) (I.R.S.Employer Identification No.)
2411 W. Sahara Avenue,
Las Vegas, Nevada 89102
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (702) 367-2411
N.A.
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(Former name or former address, if changed since last report)
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STATION CASINOS, INC.
Item 5. Attached is a press release issued by the Registrant
on March 26, 1997. The press release is incorporated
herein by this reference.
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STATION CASINOS, INC.
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.
STATION CASINOS, INC.
Date: March 27, 1997 ____________________________
Glenn C. Christenson
Executive Vice President
and Chief Financial Officer
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STATION CASINOS, INC.
EXHIBIT INDEX
20.00 The Registrant's press release, dated March 26, 1997.
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CONTACT: GLENN C. CHRISTENSON, (800) 544-2411
EXECUTIVE VICE PRESIDENT / CHIEF FINANCIAL OFFICER
STATION CASINOS, INC.
JACK TAYLOR, (702) 221-6900
VICE PRESIDENT OF PUBLIC RELATIONS
MCNABB/MCNABB/DESOTO/SALTER & COMPANY
FOR IMMEDIATE RELEASE: MARCH 26, 1997
STATION CASINOS, INC. ISSUES DEBT SECURITIES AND COMMENTS ON
CURRENT QUARTER AND DEVELOPMENT PROJECTS
LAS VEGAS -- Station Casinos, Inc. (NYSE:STN) announced today the
sale of $150 million of Senior Subordinated Notes Due 2007. The
notes were purchased by BancAmerica Securities, Inc. for
subsequent resale to qualified institutional buyers and a limited
number of institutional accredited investors. The sale is
scheduled to close on April 3, 1997. Proceeds from the sale of
the notes will be used to reduce amounts outstanding under the
Company's $372 million bank facility. The availability under the
bank facility, cash flows from operations, and equipment
financing will be used to pay the remaining construction costs
for the next phase of the Station Casino St. Charles master plan
of approximately $132 million (excluding construction period
interest and preopening expenses) as of December 31, 1996, to
provide additional equity contributions of approximately $35
million for the completion of Sunset Station, for payment of
construction payables of approximately $85 million as of December
31, 1996, and for general corporate purposes.
In addition, the Company announced preliminary quarter-to-
date results from operations and detailed development plans for
Station Casino St. Charles and Sunset Station.
Nevada Operations
The Company expects to report strong results from its Nevada
Operations for the current quarter. Palace Station has continued
to perform steadily in light of new competition and should report
single digit percentage gains in both net revenues and EBITDA
over the prior year. Boulder Station is expected to report yet
another record quarter of net revenues and EBITDA with double-
digit percentage gains over the prior year. Texas Station is
expected to report significantly improved results with record
revenue and EBITDA with EBITDA margins approaching 20 percent.
"We are very pleased with the way the quarter has progressed thus
far and expect to report all-time record levels of cash flow at
two of our three Nevada properties," said Glenn Christenson,
executive vice president and chief financial officer. "It is
particularly gratifying to witness the progress we've made at
Texas Station and the momentum building as a result of capital
improvements and operating efficiencies over the past year."
Missouri Operations
Station Casino Kansas City, which opened on January 16,
1997, generated net revenues of $24.3 million through the month
of February. EBITDA margins for the quarter are expected to
range between eight and ten percent with margins improving in
each consecutive month. Though admissions remain strong, win per
admission has shown only slight improvement over the past several
weeks. Table hold percentage continues to increase gradually,
but still lags the overall market. "We are optimistic that
recent cost cutting measures combined with the continued gradual
increase in win per passenger, and enhanced efficiencies in food
and beverage will improve overall margins to levels that we
expect," said Christenson. The total cost of the Station Casino
Kansas City project is anticipated to be within 10% of the $255
million budget (excluding net construction period interest and
preopening expenses.)
Station Casino St. Charles has undergone slight declines in
admissions since the opening of new competition in Maryland
Heights. Though data is very limited and may not be indicative
of future performance, business volume indicators for the period
March 12th to March 24th are flat to down 5% from the prior year.
Management does not expect EBITDA for the quarter to decline by
more than 5% from the prior year's level.
Development Projects
The Company has also commenced construction on certain
elements of the Station Casino St. Charles master plan, including
a backwater protective basin, two new gaming vessels, and a
transition deck to provide direct, convenient access to the
gaming facilities. The gaming facilities have been designed to
closely resemble the quality and scope of the facilities now
offered at Station Casino Kansas City. Management is pleased to
announce that it has signed a non-binding letter of intent with
Gordon Group Holdings, Ltd., the developers of the Forum Shops at
Caesars Palace, to develop and lease approximately 220,000 square
feet of space in a uniquely styled, two-story entertainment
complex to feature a variety of specialty retail stores,
restaurants and entertainment attractions. "We are excited about
our partnership with the Gordon Group and are confident that they
will provide our guests with a unique and high-quality experience
to which patrons of Station Casinos have become accustomed," said
Frank J. Fertitta III, Chairman and Chief Executive Officer. If
a definitive agreement with the Gordon Group is reached, the
Company anticipates that its share of the cost of the St.
Charles expansion project will be approximately $190 million
(excluding net construction period interest and preopening
expenses) of which approximately $58 million had been incurred as
of December 31, 1996. If the Gordon Group fails to proceed with
the development of the retail and entertainment complex, the
Company plans to complete a smaller-scale buildout of the retail
and entertainment complex for an estimated cost of $16 million
(excluding net construction period interest and pre-opening
expenses.) The existing facilities in operation at St. Charles
are expected to be sold or leased with the proceeds therefrom
used to reduce expansion costs. Management estimates that the
project will be completed in Spring 1998.
Sunset Station, located in the Green Valley/Henderson area
of Las Vegas continues on course to open in July 1997. The
property will now feature 2,700 slot and video poker machines, 40
table games, 467 guest rooms and suites, and several restaurant
and entertainment options. The Company anticipates that the cost
of the Sunset Station project will be approximately $198 million,
excluding net construction period interest and preopening
expenses. The cost of the project has increased by $38 million
from the previously estimated cost of $160 million. The
increased cost is primarily attributable to the Company's
decision to expand the project to include 400 additional slot
machines, enhancements to the streetscape facades, sky ceilings,
stained glass, landscaping and other general interior upgrades,
an increased number of suites, and an enhanced outdoor pool and
amphitheater. In addition, the Company also experienced
increased construction costs due in part to a high level of
overall construction activity in Las Vegas. "The enhanced
project will position the Company as the premier entrant in the
Henderson/Green Valley area and offer guests an unmatched
entertainment experience in the locals' and repeat tourist
customer market," stated Christenson. The construction of Sunset
Station is being financed through a non-recourse $110 million
First Mortgage Construction Term Loan and $40 million operating
lease. In addition, the remaining construction costs will be
funded through additional equity contributions of approximately
$35 million from the Company.
Station Casinos, Inc. is a multi-jurisdictional gaming
company that owns and operates the Palace Station Hotel & Casino,
the Boulder Station Hotel & Casino, and the Texas Station
Gambling Hall & Hotel in Las Vegas, Nev., as well as slot machine
route management services in Southern Nevada and Louisiana.
Station Casinos, Inc. also owns and operates Station Casino St.
Charles, a gaming and entertainment facility in St. Charles, Mo.
and Station Casino Kansas City, a gaming and entertainment
facility in Kansas City, Mo. The Company is developing Sunset
Station Hotel & Casino in Las Vegas, Nev., and anticipates an
opening in July 1997.
This press release may be deemed to contain forward-looking
statements with respect to the financial condition, results of
operations and expansion projects of STN and its subsidiaries
which involve risks and uncertainties including, but not limited
to, competition from other gaming operations, construction risks,
and licensing and other regulatory risks. Further information on
potential factors which could affect the financial condition,
results of operations and expansion projects of STN and its
subsidiaries are included in the filings of STN with the
Securities and Exchange Commission, including, but not limited to
STN's Annual Report and Form 10-K for the fiscal year ended March
31, 1996 and Registration Statement on Form S-3 File No. 333-
1102.
