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EXHIBIT 99.1
WEDNESDAY OCTOBER 18, 9:02 AM EASTERN TIME
PRESS RELEASE
SOURCE: STATION CASINOS, INC.
STATION ANNOUNCES NEW BUYER FOR MISSOURI ASSETS; AGREEMENT TO PURCHASE THE
RESERVE HOTEL & CASINO
LAS VEGAS, Oct. 18 /PRNewswire/ -- Station Casinos, Inc. ("Station" or "the
Company") (NYSE: STN - NEWS) today announced it has entered into a definitive
agreement to sell Station Casino St. Charles and Station Casino Kansas City to
Ameristar Casinos, Inc. ("Ameristar") for $475 million in cash. The Company's
previously announced agreement with its Midwest management team has been
terminated and will be superceded by the agreement with Ameristar.
The Company has also signed an agreement to purchase The Reserve Hotel & Casino
("The Reserve") in Henderson, Nevada for $70 million. The Reserve opened in
February 1998 primarily serving customers in Henderson, Nev., America's
fastest-growing city over the past six years. Situated on 33 acres at the
intersection of Interstate 215 and Interstate 515, The Reserve includes
approximately 42,000 square feet of casino space (with 1,430 slot machines, 26
table games, a sports book, keno and bingo), a 224-room hotel, six restaurants,
1,900 surface parking spaces and meeting space. The Reserve has been master
planned to accommodate phased expansions of the gaming areas, additional hotel
rooms, multi-level parking and other amenities. The Reserve purchase agreement
is subject to termination if the Missouri asset sales are not completed and is
also subject to the completion of due diligence on the property.
Both transactions are subject to certain customary contingencies, including the
respective purchaser's receipt of regulatory approvals. In connection with these
transactions, Ameristar has announced it has obtained financing commitments from
affiliates of Deutsche Bank AG. Wasserstein Perella & Co. acted as financial
advisor to Station with respect to the Missouri transactions.
Frank J. Fertitta III, chairman and chief executive officer of Station, stated,
"Ameristar has a solid track record in emerging gaming markets and has shown
considerable interest in establishing a presence in Missouri for some time. We
are pleased that they have decided to retain our Midwest management team, who
will certainly add value and continuity to this transaction. The sale to
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Ameristar also presents an excellent opportunity to continue to reinvest the
funds from the divestiture of our Missouri assets and expand our presence in Las
Vegas with the purchase of The Reserve. In The Reserve, we obtain a virtually
new plant at a discount to replacement cost. While the purchase of The Reserve
is subject to further due diligence, we believe we can improve operations to
make this a very attractive investment for our shareholders."
Station Casinos, Inc. is a multi-jurisdictional gaming company that owns and
operates the Palace Station Hotel & Casino, the Boulder Station Hotel & Casino,
the Texas Station Gambling Hall & Hotel, the Santa Fe Station Hotel & Casino,
and the Wild Wild West Gambling Hall & Hotel in Las Vegas, Nevada, Sunset
Station Hotel & Casino in Henderson, Nevada, as well as slot machine route
management services in Clark County, Nevada. Station Casinos, Inc. also owns and
operates Station Casino St. Charles, a gaming and entertainment facility in St.
Charles, Missouri, and Station Casino Kansas City, a gaming and entertainment
facility in Kansas City, Missouri. In addition, the Company has also entered
into an agreement to purchase the Fiesta Casino Hotel in North Las Vegas,
Nevada. The Fiesta acquisition is expected to close prior to January 31, 2001.
This press release may be deemed to contain certain forward-looking statements
with respect to the business financial condition, results of operations,
dispositions, acquisitions, and expansion projects of the Company and its
subsidiaries which involve risks and uncertainties including, but not limited
to, financial market risks, competition from other gaming operations,
construction risks, and licensing and other regulatory risks.
Further information on potential factors which could affect the business
financial condition, results of operations, dispositions, acquisitions, and
expansion projects of the Company and its subsidiaries, are included in the
filings of the Company with the Securities and Exchange Commission, including,
but not limited to the Company's Annual Report on Form 10-K for the year ended
December 31, 1999, and its Registration Statement on Form S-4 File No.
333-71227. The Company's 1999 Annual Report is available to view on its website
at WWW.STATIONCASINOS.COM.
SOURCE: STATION CASINOS, INC.
