Red Rock Resorts has registered an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $100 million, although this number is usually just a placeholder. The company intends to list on the Nasdaq under the symbol RRR.
The underwriters for the offering are Deutsche Bank, JPMorgan, Merrill Lynch and Goldman Sachs.
This leading gaming, development and management company operates 21 strategically located casino and entertainment properties. It has developed over $5 billion of regional gaming and entertainment destinations in multiple jurisdictions. Additionally, Red Rock Resorts is an established leader in Native American gaming, managing facilities in northern California and western Michigan.
The company began operations in 1976 with a 5,000-square-foot casino featuring 100 slot machines and has grown through development and acquisitions to become a premier provider of gaming and entertainment for residents of the Las Vegas regional market and visitors.
Its Las Vegas portfolio includes nine major gaming and entertainment facilities and ten smaller casinos (three of which are 50% owned), offering roughly 19,500 slot machines, 300 table games and 4,000 hotel rooms. These Las Vegas properties are broadly distributed throughout the market and easily accessible, with over 90% of the Las Vegas population located within five miles of one of its gaming facilities.
Most of the major properties are master-planned for expansion, enabling the company to incrementally expand facilities as demand dictates. Red Rock Resorts also controls six highly desirable gaming-entitled development sites, consisting of approximately 310 acres in Las Vegas and Reno, Nev.
Red Rock Resorts believes that an economic recovery is underway in the Las Vegas regional market, which will ultimately prove favorable. The company picked out a few recent metrics that demonstrate this:
- Population growth was approximately two-and-a-half times the national average in 2014.
- Las Vegas was among the leaders in the nation in year-over-year employment growth at 2.6%, compared to the national average of 1.9% based on preliminary data in November 2015 from the U.S. Bureau of Labor Statistics (BLS).
- Home value appreciation of 7.9%, compared to the national average of 5.6% during the 12 months ended September 30, 2015.
- Las Vegas welcomed a record 42.2 million visitors for the 12 months ended November 30, 2015.
- Over $12 billion in new investments are either in the planning stages or actively under development in Las Vegas, based on public announcements.
The company intends to use the net proceeds from the offering to pay a portion of the purchase price for the Fertitta Entertainment Acquisition, acquire newly issued LLC units in Station Holdco and purchase LLC units from certain of its existing owners.
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