EXHIBIT 99.2
[LOGO OF STATION CASINOS INC.-Registered Trademark-]
CONTACT: GLENN C. CHRISTENSON, (800) 544-2411
EXECUTIVE VICE PRESIDENT/CHIEF FINANCIAL OFFICER/
CHIEF ADMINISTRATIVE OFFICER
STATION CASINOS, INC.
ROD S. ATAMIAN, (800) 544-2411
VICE PRESIDENT OF FINANCIAL SERVICES
STATION CASINOS, INC.
JACK TAYLOR, (702) 221-6900
DIRECTOR OF CORPORATE PUBLIC RELATIONS
STATION CASINOS, INC.
FOR IMMEDIATE RELEASE: JULY 20, 2000
STATION ANNOUNCES STRATEGIC REPOSITIONING:
COMPANY AGREES TO ACQUIRE FIESTA CASINO HOTEL, SELL MISSOURI HOLDINGS
LAS VEGAS---Station Casinos, Inc. (NYSE: STN) today reaffirmed its commitment to
the Las Vegas locals' market with the announcement of a strategic repositioning
focused on Southern Nevada.
"We continue to believe that the steady population growth in Las Vegas,
coupled with our operating experience and success in this market, provides a
solid platform to support our continued investment in the Las Vegas metropolitan
area," said Frank J. Fertitta III, chairman and chief executive officer. "We are
excited about the strategic opportunities and value that this repositioning will
provide our customers, team members, and shareholders."
Station Casinos, Inc. ("Station" or "the Company") today announced it
has entered into a definitive agreement to acquire the Fiesta Casino Hotel in
North Las Vegas, Nev., from Fiesta Hotel Corporation ("Fiesta"), a subsidiary of
Joe G. Maloof & Company, Inc. ("Maloof"). The purchase price of $185 million
includes a non-compete agreement with Maloof, Fiesta, and certain members of the
Maloof family. The all-cash purchase has been approved by the boards of
directors of Station, Maloof and Fiesta and is expected to close by January 31,
2001. Completion of the acquisition is subject to regulatory approvals.
The Fiesta Casino Hotel is located at the intersection of Lake Mead
Boulevard and Rancho Road in North Las Vegas, near the Texas Station Gambling
Hall & Hotel. Situated on 25 acres, the Fiesta currently offers approximately
70,000 square feet of casino space featuring 1,900 gaming devices and 30 table
games, 100 guest rooms, four full-service restaurants, a buffet, several
fast-food outlets, bingo, and a
race and sports book. Upon completion of the transaction, the property will
retain the Fiesta name and theme.
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Station Strategic Repositioning - add one
George Maloof, president of Fiesta Hotel Corporation, said, "The Fiesta
brand is a natural fit for Station and will complement the existing Station
brand in Las Vegas. Station shares the same high standards of quality service
and value for which we have become known. In considering the sale for our
employees, we valued Station's reputation as a distinguished employer and the
range of opportunities for growth that this transaction would provide. We are
pleased that the Fiesta will join Station's franchise of premier gaming and
entertainment properties for Las Vegas residents."
The Fiesta purchase follows Station's announcement in June that it has
entered into an agreement to purchase the Santa Fe Hotel & Casino in Las Vegas,
Nev., from Santa Fe Hotel, Inc. (SFHI), a subsidiary of Santa Fe Gaming
Corporation (SFGC). The Santa Fe transaction is expected to close in the fourth
quarter of 2000.
"The acquisition of the Fiesta is a natural progression in our strategy
to maintain a leadership position in the Las Vegas locals' market," Fertitta
said. "Together with the Santa Fe, the Fiesta property solidifies our franchise
in northwest Las Vegas, while providing a platform to further develop the Fiesta
brand as a complement to the Station brand. The Fiesta has been successful in
differentiating itself as a dynamic, mid-sized casino, blending many of the same
elements of our Station brand in appealing to Las Vegas residents. We expect to
utilize this brand at sites where a smaller footprint is required or
advantageous."
As part of its repositioning strategy, Station also announced it has
entered into a definitive agreement to sell its Missouri properties, Station
Casino St. Charles and Station Casino Kansas City, to a group led by John
Finamore, president of Station's Midwest operations, and William W. Warner, the
company's vice president of finance.
The purchase price for the Missouri assets is $475 million. However,
the Company expects net cash received to exceed the purchase price, based on its
belief that it can complete a like-kind exchange for the properties.
Frank Fertitta said, "The sale of the Missouri assets is consistent
with our Company's focus on expanding our presence in the Las Vegas market,
where we have generated exceptional returns on invested capital. While the
transaction will be dilutive to earnings initially, it reflects the Company's
commitment to maintaining a strong balance sheet, which provides the flexibility
to capitalize on the master planning and new development opportunities embedded
in our Las Vegas franchise. We believe the sale will also create more long-term
shareholder value by focusing all the Company's resources on Las Vegas. Its
completion provides us the most strategically focused portfolio of assets in the
gaming industry."
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Station has a portfolio of six fully entitled parcels for the
development of new gaming properties in the Las Vegas Valley. The addition of
the Fiesta brand to the existing Station brand will provide added flexibility
for future development at any time.
The Missouri transaction is subject to certain customary contingencies,
including the purchaser's receipt of regulatory approvals and financing.
In order to ensure it has the management resources to accomplish its
Las Vegas-based strategy, the Company also announced today that Lorenzo J.
Fertitta will join the Company's management team full-time with the title of
president. He will report to Frank J. Fertitta III, who will continue to serve
as the chairman and chief executive officer of the Company. Blake L. Sartini
will remain chief operating officer, member of the board of directors and a
principal shareholder.
Lorenzo Fertitta is a principal shareholder and a co-founder of the
Company, having served as a member of the Board of Directors of the Company
since 1991. He holds an MBA from New York University and has been actively
involved in the strategic direction of the Company, serving as a consultant and
frequent advisor to the chairman of the board.
Frank Fertitta said, "As our Company has grown, so has our need for
Lorenzo to take a more active role in the day-to-day management of the Company's
business. He has a unique understanding of our Las Vegas locals strategy and the
confidence of our entire management team."
Two other Station executives, Don Marrandino and Kevin Kelley, have
been promoted as part of the repositioned management structure.
Marrandino, president/general manager of Boulder Station and Sunset
Station, will become president of East Las Vegas operations with overall
management responsibility for Boulder Station, Sunset Station, Barley's Casino
and Brewing Co., Southwest Gaming Services and the new Station Casino Green
Valley Ranch.
Kelley, president/general manager of Texas Station, will become
president of West Las Vegas operations with overall management responsibility
for Texas Station, Palace Station, The Wild Wild West Gambling Hall & Hotel, the
future Santa Fe Station, and the Fiesta brand.
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, and the Wild Wild West Gambling
Hall & Hotel in Las Vegas, Nev., Sunset Station Hotel & Casino in Henderson,
Nev., as well as slot machine route management services in Clark County, Nev.
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.
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This press release may be deemed to contain certain forward-looking
statements with respect to the business, financial condition, and results of
operations of the Company and its subsidiaries which involve risks and
uncertainties including, but not limited to, changes in the financial markets,
licensing and other regulatory risks, competition from other gaming operations,
and construction risks. Further information on potential factors which could
affect the business, financial condition, and results of operations 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.
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