American Casino & amp; Entertainment Properties (ACEP) was bought by Golden Entertainment in October 2017 for $ 850 million. ACEP is a casino holding company headquartered in Stratosphere Las Vegas. ACEP is a wholly owned subsidiary of American Real Estate Partners before being sold to Whitehall Street Real Estate Funds, an investment arm of Goldman Sachs, in February 2008. The company has the following 4 casinos: Aquarius Casino Resort, Arizona Charlie's Boulder, and Stratosphere Las Vegas. Golden Entertainment earned ACEP from Whitehall.
Video American Casino & Entertainment Properties
History
Shortly after the opening, Stratosphere Las Vegas on April 30, 1996, Stratosphere Corporation was forced to file for bankruptcy. After acquiring the majority of bonds, ACEP controls the casino. Carl Icahn acquired four properties for $ 300 million.
On November 29, 2005, Harrah's Entertainment announced plans to sell Laughlin Flamingo casino to ACEP. The sale closed on May 19, 2006, and Flamingo Laughlin was renamed to Aquarius Casino Resort in October 2006.
On April 23, 2007, it was announced that ACEP sold for $ 1.3 billion to Whitehall Street Real Estate Funds, an investment fund managed by Goldman Sachs. Sales closed on February 21, 2008. Although revenues for 2008 only fell 4.47% from 2007, the acquisition interest cost has turned ACEP into a money-losing operation. ACEP posted its first positive net profit since 2007 of $ 7.0 million in 2014 and $ 12.1 million in 2015.
In 2007, Whitehall Street Real Estate Funds, which owns 40% of Las Vegas Hilton and is a passive investor in other casino properties, made an offer of $ 1.3 billion for four properties. The appraisal sets a value of $ 718 million for the land under four properties. The building is worth $ 366 million. The land valuation seems almost entirely based on a 17 acre (69,000 m 2 ) land near the Stratosphere.
On February 21, 2008, ACEP ownership changed hands from the previous owner, Carl Icahn, to Whitehall Street Real Estate Funds. The new owner retired a $ 255 million senior record owned by the former owner and replaced it with $ 1.1 billion in new notes owned by Goldman Sachs Term Loans. This loan interest far exceeded the company's net income in 2007. Company earnings should grow to cover this new financing.
In 2008, ACEP completed $ 54.0 million in renovations at Aquarius Casino Resort.
In the 4th quarter of 2008, corporate earnings began to drop dramatically. The acquisition cost is so large that the company operates at a net loss. In March 2009, the company announced it would start layoffs.
In May 2009, Whitehall was in discussion to restructure the debt with his lender Goldman Sachs for fear that the company could fail if the game and the number of visitors continued to decline. Whitehall, a Goldman affiliate, is finalizing a terms of agreement that will see Goldman forgive $ 593 million of its $ 1.1 billion debt burden. Whitehall will also be released from an additional $ 200 million of additional debt. In return for debt relief, Goldman's mortgage unit will earn 22 percent interest in the company.
In 2009, net income fell to $ 356 million, the lowest since 2005. The company restructured its debt in the last quarter and dismissed 600 employees.
In 2011, ACEP completed $ 20 million in renovations in the Stratosphere, updating the rooms and casino floors and promoting changes in new marketing campaigns. The Stratosphere also adds a lounge called the 107th floor Sky Lounge 108. In addition to renovations, Stratosphere adds a new sensation, Sky Jump.
In 2015, net revenue rose to $ 373 million.
In June 2017, Whitehall agreed to sell ACEP to Golden Entertainment for $ 850 million.
In October 2017, Golden Entertainment closed its $ 850 million purchase from four casinos owned by ACEP.
Maps American Casino & Entertainment Properties
References
External links
- American Casino & amp; Entertainment Properties
Source of the article : Wikipedia
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