Gloves are off [Fertitta @ FirstTake]

"
How is Tilman Fertita paying $2.2 billion for the Houston Rockets when he and his businesses have less than $300 million of cash?

By selling $1.415 billion worth of bonds.

According to Law360: "Casino and hotel operator Golden Nugget Inc. announced Wednesday that it had priced a $1.415 billion notes offering and that it will combine its casino operations with those of restaurant chain operator Landry’s Inc., joining the two companies, which are both owned by a Texas billionaire."

The bonds are not cheap. PR Newswire says: "The Senior Notes will be issued under the indenture, pursuant to which Landry's initially issued $600 million in aggregate principal amount of its 6.750% senior notes due 2024 on October 4, 2016 (the "Existing Senior Notes")"


"
Fertitta sold $745 million of bonds maturing in 2024 at an interest rate of 6.75%, and $670 million of bonds maturing in 2025 at 8.75%.

The bonds are the obligation of Golden Nugget, Inc. Bondholders have no recourse to the basketball team. GNI, wholly owned by Fertitta, owns and operates the Golden Nugget hotel, casino and entertainment resorts in downtown Las Vegas and Laughlin, Nevada, and the Lake Charles property in Louisiana. The company also owns and operates dining restaurants, mostly casual, such as Landry’s Seafood House, ChartHouse, Saltgrass Steak House and Rainforest Café.



The Rockets made it to the Western Conference finals last season. But not all of the bond buyers have fared nearly as well. The price of the 2024s has fallen from $102 to $98. Or looked at another way, the yield on the 2024s has increased to 7.1% from 6.75%. Yes, bonds in general have been hammered this year due to climbing interest rates, but other restaurants, like Yum Brands and Wendy’s, have comparable bonds with yields more than 100 basis points lower. Investors may also have soured a bit when Fertitta was rebuffed in his attempt to buy Caesars Entertainment this month.

But getting the bondholders a nice return on their capital is not going to be a layup"

 

Let them. He won’t have to worry too much about scoring and running plays with Westbrook attacking.

 

The guy has so much money off the books it ain’t even funny.

 

probably. He has boasted he's almost a mademan. His casino probably has a lot of escort action that's off the book.

So don't F with Tilman.

He has connection with the Legitamate Italian Business Men Association Club

 

Tilman talks way too much before accomplishing anything NBA related.

 

@Os Trigonum

So many hypocrites here

They all want Max Kellerman to recognize the Rockets and when our owner goes on the show to rep the Rockets you guys aren’t satisfied

Les never did this
He was too busy on his knees with Chinese corporations

 

Can you imagine if the 99ers pooled their resources and bought the Rockets?

Our brother @DaDakota would roast Max Kellerman

 

Don't pay attention. Heck avoid the turd talk from them... ESPN has been put on notice about that kind of thing. Bleacher Report and Yahoo aren't even relevant outlets anymore. Who cares what they say.

 

Russell WB is the perfect player for Fern Titta.

One of the few 'Black and White' Players in terms of Strengths and Weaknesses. None of that Grey area.

 

Most mobsters do.

 

At least he's from Houston , not like the former New Yorker who loves Florida

 

Our owner is one weird dude. He was just on MSNBC, and here are some of his takeaways- (Might be D&D related FYI but interesting to really understand how he sees the world)

-Thinks Billionaires are unfairly victimized
-Thinks Billionaires should be held in higher esteem because "they hire everyone".
-Says recessions are good FOR HIM because he can pick off competitors who don't have the means he has to survive
-Thinks Medicare for All is the Healthcare system we need. Everyone is entitled, pays a set percentage, and if want more coverage you can seek supplemental plans
-He thinks his dishwashers & waiters are doing better than ever in this economy but does support a raise in minimum wage
-Thinks Trump will win again because "blue collar" voters primarily vote on "social issues".

No real comments about the Rockets. Mostly touting the Gordon Gecko line about capitalism. It'll be interesting to see if his worldview changes with more time in the NBA. I know that it's obvious that Morey's worldview has changed fairly significantly, but he's also not coming into the NBA in the position of a blood sucking money hungry CEO billionaire. Maybe just a day-trader wall street millionaire in his case.

I also wouldn't be too thrown off by his views of Medicare for All. Keep in mind he mostly hires hourly workers, and sees the tide coming on the need to provide healthcare to everyone. I think he has no financial interest in providing a corporate healthcare plan for his workers so M4A actually works for his pockets.

 

He's about to drop a bomb on ESPN Outside the Lines. Coming up.

 

@Jontro

People are obviously butt hurt here cause they want to be on TV with Stephen A and Max Kellerman.

That's the real topic here.

 

Aka mafia