Red Rock Resorts buying back 6.9 million shares from shareholders
The parent company of Station Casinos Inc. will buy back 6.9 million shares for $51.50 a share as part of a “modified Dutch auction” process that concluded Thursday.
In a Securities and Exchange Commission filing Friday, Red Rock Resorts Inc. reported the results of the auction that was first announced in November. The company said it intends to buy back about $350 million in shares as well as pay a $3-per-share dividend. Red Rock stock closed Thursday at $49.62 a share.
Under a Dutch tender, a company seeks bids for the number of shares and amount an investor is willing to pay. The company then can choose the highest bid to reach the total amount of the shares sold, offering that price to all investors.
Analysts said at the time that they expected the price to be somewhere between $49 and $53 a share.
The move is expected to improve Red Rock’s balance sheet as it prepares to build a new neighborhood $750 million casino in southwest Las Vegas on Durango Drive.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
