Affinity Gaming Shareholder Z Capital Offers to Buy Whole Company
August 02 2016 - 9:30AM
Dow Jones News
Private-equity firm Z Capital Partners is once again interested
in buying Affinity Gaming LLC, announcing an offer valuing the
casino company at more than $560 million.
Z Capital has two Affinity board seats and owns about 41.1% of
the company. Affinity shares are registered with the Securities and
Exchange Commission but don't trade on an exchange.
Affinity's 11 U.S. casinos include three Primm, Nev., locations
that its predecessor Herbst Gaming Inc. bought from MGM Mirage for
$400 million in 2007. Herbst emerged from chapter 11 bankruptcy
protection at the end of 2010.
"We have always believed that Affinity Gaming needs a singular
voice and direction with a long-term capital partner to position it
for future growth," Z Capital said in a statement.
A spokesman for Affinity didn't immediately return a request for
comment.
Z Capital withdrew a nonbinding proposal for Affinity in
February 2013. It offered $9.75 a share in early 2015, eventually
increasing the price to $15. Z Capital said in a Jan. 31 letter to
Affinity that "there are no foreseeable prospects for a strategic
transaction given the state of the credit markets."
The new offer is valued at $15 a share.
Affinity's other owners include hedge fund Silver Point Capital.
A Silver Point representative, David Reganato, became Affinity's
chairman in September.
In May, Affinity reported a 15.1% increase in first-quarter
operating income, which was credited partly to efforts to
prioritize slot revenue. The company reaffirmed its guidance for
2016 revenue of $387 million to $399 million.
Casino deals this year include Red Rock Resorts Inc.'s $312.5
million pact for the Palms Casino Resort, while Boyd Gaming Corp.
is buying Aliante Casino Hotel and Spa for $380 million and Cannery
Casino Resorts' Las Vegas operations for $230 million.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
August 02, 2016 09:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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