George Maloof and family now own as little as 2% in the Palms Casino Resort. A deal was yesterday signed that diluted the family’s share down. In return, a debt of $400million was cleared in the agreement that saw TPG Capital and Leonard Green & Partners both see their share reach 49%. $20m in debt will still be tied to the neighboring Palms Place condo-hotel.
On the deal, resort owner Maloof told The Associated Press, “Not having any debt is a pretty good position to be in, and we’re going to grow at the Palms and look at things that we want to do here and look at other opportunities. It was real important to be nimble in these times and I think we’re in a great position now.”
The deal still needs regulatory approval and that could take a further four to five months to come to fruition. Maloof also explained that the family has an option to buy back a 20% share in the casino through options and warrants. That is dependent on how well the casino ends up doing.
Anyone hoping to take the chairman’s job will also be disappointed as Maloof explained that the house is not going to be seeing a lot of change.
“I don’t think operationally you’ll see much change — I think we always want to look at ways to do things better. That’s the intent.”
The fact that TPG are on one of those companies involved in the deal has fuelled speculation that Palms might become part of the Caesars Entertainment portfolio. This is down to the fact TPG is a major stakeholder in Caesars. Maloof pissed on the rumor as if it were a small campfire though.
It will be interesting to see of Palms continue in their pursuit of hosting every celebrity under the sun. The 2011 NHL Awards take place tonight and with Shaq’s retirement party on Saturday, anyone could be next. Just make sure that Teakwood isn’t being pumped out of the air-con system people.