Did a bit of research and found the following articles about Maloofs/Palms debt. The first is February 2010 and the second is January 2011. However, the Kings are never mentioned in any of the articles. Be careful in forming any opinions as to how this might affect the Maloofs ownership of the Kings which is very separate from the Palms.
Having just been in Las Vegas this past week I saw three Palms buildings: the Palms Casino Resort, the Palms Condominiums and Playboy Club and a third building identical to the condo building, all about 3/4 mile west of the Las Vegas Strip. No mention of the Palms in any news or media outlet other than the celebrity and party stuff going on. Not sure which building relates to the below articles.
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Harrah's private equity owner buying up Palms debt
(VIA DEBTWIRE) · FEBRUARY 25, 2010 · 7:06 PM
Texas Pacific Group, one of the private equity owners of Harrah's Entertainment in Las Vegas, is accumulating debt in the Palms resort, according to a story published Wednesday by Debtwire, a publication of the Financial Times.
Citing unnamed sources, the publication said TPG had acquired a piece of the Palms' $380 million bank debt. It also said Palms' EBITDA – a commonly-used profit indicator – fell to $12 million this year amid the recession from about $70 million two years ago.
The Palms is restructuring its debt and the Maloof family, which owns the Palms, is in the process of selling its beer distribution business in New Mexico for $100 million, the publication said.
The Palms loans are privately-held but can be traded among investors.
Palms owner George Maloof declined comment on the story and declined to discuss his resort's financing other than to say the business was on solid ground.
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Green, TPG Are Said to Be in Talks Over Controlling Stake in Palms Casino
By Beth Jinks and Jonathan Keehner - Jan 6, 2011 7:09 AM PT
Jan. 6 (Bloomberg) -- Leonard Green & Partners LP and TPG Capital are in talks to take a controlling stake in the Palms Casino Resort, a Las Vegas celebrity hangout, as owner George Maloof seeks to restructure the property’s debt, people with knowledge of the matter said. Bloomberg's Cristina Alesci reports. (Source: Bloomberg)
Leonard Green & Partners LP and TPG Capital are in talks to take a controlling stake in the Palms Casino Resort, a Las Vegas celebrity hangout, as owner George Maloof seeks to restructure the property’s debt, people with knowledge of the matter said.
The buyout firms acquired most of a loan backed by the casino and its hotel towers at a discount last year, and may take an equity stake in the first quarter as part of the restructuring, said three of the people, who asked not to be identified because the deliberations are private. No agreement has been reached and talks are continuing, the people said.
Maloof, who opened the Palms in 2001, may partner with Los Angeles-based Leonard Green and TPG to remain the operator with a reduced ownership stake, the people said. The property is backed by a revolving credit facility, originally for $400 million, that came due in October and wasn’t refinanced. The resort is located less than a mile off the Las Vegas Strip.
The Palms breached financial covenants on its loan after operating conditions worsened, the people said. Private-equity firms and casino companies are scouring Las Vegas for deals as the city emerges from a record slump in gambling and tourism worsened by the financial crisis and housing collapse.
TPG, based in Fort Worth, Texas, owns Caesars Entertainment Corp., the world’s biggest casino operator formerly called Harrah’s, after taking the company private for $30.7 billion, including debt and transaction costs, in January 2008 with Apollo Global Management LLC.
Representatives of TPG and the Palms declined to comment. A spokesman for Leonard Green did not respond to calls and e-mails for comment.