1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

Tilman sells a piece

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by Plowman, Jun 29, 2020.

  1. Plowman

    Plowman Contributing Member

    Joined:
    Sep 26, 1999
    Messages:
    8,725
    Likes Received:
    6,163
    Golden Nugget online gaming
     
  2. xiki

    xiki Contributing Member

    Joined:
    Jun 18, 2002
    Messages:
    15,991
    Likes Received:
    1,557
    implications for his overall biz?
     
  3. Nook

    Nook Member

    Joined:
    Jun 27, 2008
    Messages:
    35,417
    Likes Received:
    40,802
    Speculation at this point.

    Still we know he has been taking out loans and with the poor handling of COVID19 in areas where TF owns restaurants, it is a concern.

    Consider that there is also mounting evidence that restaurants are one of the worst social vectors for the spread of the virus.
     
    BallSoHarden, D-rock and xiki like this.
  4. pippendagimp

    pippendagimp Member

    Joined:
    Sep 1, 2000
    Messages:
    24,844
    Likes Received:
    15,694
  5. J.R.

    J.R. Contributing Member

    Joined:
    Jun 30, 2008
    Messages:
    79,017
    Likes Received:
    76,167
    https://www.prnewswire.com/news-releases/golden-nugget-online-gaming-to-become-public-301084840.html

    Tilman J. Fertitta and Landcadia Holdings II, Inc. (NASDAQ: LCA, "Landcadia II") announced today that Landcadia II has entered into a Purchase Agreement to acquire Golden Nugget Online Gaming, Inc. ("GNOG"), a US online real money casino owned by Tilman Fertitta, recognized by both its peers and customers alike as the industry leading online casino that brought Live Dealer to the US market place. Landcadia II is a publicly traded special purpose acquisition company co-sponsored by Fertitta Entertainment, Inc. and Jefferies Financial Group Inc.

    Tilman J. Fertitta will remain GNOG's Chairman and CEO, and Thomas Winter, who was brought in to develop Golden Nugget's online gaming business, will continue to serve as GNOG's President. During the seven years since Thomas Winter started Golden Nugget's iGaming business in New Jersey, revenues and profitability have grown each year despite facing competition with greater financial resources. According to Mr. Fertitta, "Golden Nugget is one of the most time-honored brands in the gaming business today. When customers hear the name Golden Nugget, they know they are dealing with a trusted online gaming business. Thomas and his team have done a remarkable job, are the best in the industry, and with this transaction, will have access to growth capital to allow for the rapid expansion of the business."

    Key Transaction Terms

    The transaction values the combined company at an anticipated pro forma enterprise value of approximately $745 million, or 6.1x GNOG's estimated 2021 revenue of $122 million. The consideration payable to the parent entity of GNOG will consist of a combination of cash and rollover equity in Landcadia II. Upon completion of the transaction, Tilman J. Fertitta, Chairman and CEO, will, through the parent entity of GNOG, hold a controlling economic interest (through an Up-C structure described below) and a controlling voting interest in the combined company. The combined company will have a dual-class share structure with super voting rights for Mr. Fertitta.

    Landcadia II will be assuming $150 million of GNOG debt of and will pay down at closing an additional $150 million of its debt, plus pay prepayment fees, transaction fees and expenses. Subject to redemptions, there is approximately $321 million currently held in Landcadia II's trust account. Upon payment of the purchase price, debt repayment and transaction fees and expenses, the combined company will have at least $80 million on its consolidated balance sheet at closing and an anticipated pro forma equity market capitalization of nearly $700 million.

    The transaction will be structured as an Up-C where an entity indirectly owned by Mr. Fertitta will retain common units of a partnership managed by the combined company and an equal number of non-economic voting shares in the combined company. The combined company will also enter into a customary tax receivable arrangement with such entity indirectly owned by Mr. Fertitta, which will provide for the sharing of tax benefits relating to certain pre-combination tax attributes, as well as tax attributes generated by the transaction and any subsequent sales or exchanges by the entity indirectly owned by Mr. Fertitta of their equity interests, as those attributes are realized by the combined company.

    The transaction has been unanimously approved by the Board of Directors of Landcadia II, upon the unanimous recommendation of a committee comprised solely of Landcadia II's disinterested independent directors (the "Committee"). The transaction will require the approval of a majority of the outstanding shares of Landcadia II, excluding shares beneficially owned by Tilman J. Fertitta and Jefferies Financial Group, and is subject to customary closing conditions, including certain regulatory approvals. Jefferies LLC is acting as exclusive financial and capital markets advisor to Landcadia II. Haynes and Boone LLP is acting as legal advisor to GNOG. White & Case LLP is acting as legal advisor to Landcadia II. Houlihan Lokey, Inc. is serving as financial advisor to the Committee of Landcadia II.
     
    D-rock, GradyMcTracy, xiki and 2 others like this.
  6. daywalker02

    daywalker02 Easter Egg Hunter - Tell me why? نحن عائلة
    Supporting Member

    Joined:
    Jul 17, 2006
    Messages:
    57,586
    Likes Received:
    17,706
    It's too early to sell, could mean he is not that liquid.
     
  7. Icehouse

    Icehouse Contributing Member

    Joined:
    Jun 23, 2000
    Messages:
    11,790
    Likes Received:
    1,607
    So they paid off $300M of el cheapo debt?
     
  8. fattz

    fattz Member

    Joined:
    Oct 27, 2009
    Messages:
    2,766
    Likes Received:
    1,466
    This is the start of a crippling problem for our team; with the gambling ties and hard times, point shaving and what not will soon begin to circulate.

    (well that is my fear)
     
  9. xiki

    xiki Contributing Member

    Joined:
    Jun 18, 2002
    Messages:
    15,991
    Likes Received:
    1,557
    from JR’s post, it would appear liquidity has been benefitted nicely.
     
  10. Os Trigonum

    Os Trigonum Contributing Member
    Supporting Member

    Joined:
    May 2, 2014
    Messages:
    32,874
    Likes Received:
    44,411
    at least he didn't trade the Beard
     
  11. Nook

    Nook Member

    Joined:
    Jun 27, 2008
    Messages:
    35,417
    Likes Received:
    40,802
    No, I don't think he is going to sell.

    Hell if he wanted to he could sell only half of it, he has already received an offer in the past.
     
    raining threes and daywalker02 like this.
  12. BasketballReasons

    BasketballReasons Contributing Member

    Joined:
    Jun 27, 2008
    Messages:
    5,045
    Likes Received:
    236
    He is going to make bank with this. Smart move. He owns part of LCA it's a SPAC he set up to do exactly this.

    The rich get richer.
     
    D-rock, raining threes and studogg like this.
  13. snowconeman22

    snowconeman22 Member

    Joined:
    Oct 7, 2008
    Messages:
    10,107
    Likes Received:
    10,801
    I don’t understand anything you said , but I plead ignorance

    idk if this is a good move . You’d think the ONLINE businesses would be the best positioned in the future . But , maybe it’s a sell high chance . Idk what he got for it
     
    kjayp likes this.
  14. Plowman

    Plowman Contributing Member

    Joined:
    Sep 26, 1999
    Messages:
    8,725
    Likes Received:
    6,163

    745,000,000
     
  15. rimrocker

    rimrocker Contributing Member

    Joined:
    Dec 22, 1999
    Messages:
    20,187
    Likes Received:
    2,673
    I'm sure the Lancadia folks are "disinterested independent directors."
     
  16. JoeBarelyCares

    JoeBarelyCares Contributing Member

    Joined:
    Jan 9, 2001
    Messages:
    6,236
    Likes Received:
    1,104
    Seed money for a deep dive into the Luxury Tax pool!
     
    Plowman and Scarface like this.
  17. studogg

    studogg Contributing Member

    Joined:
    Jul 1, 2002
    Messages:
    5,048
    Likes Received:
    868
    Tilman is golden. He is far from broke and could continue to descale to shed costs if need be.
    When you own a casino - you own a money printing machine.
     
  18. ApacheWarrior

    ApacheWarrior Member

    Joined:
    Aug 3, 2017
    Messages:
    3,040
    Likes Received:
    3,756
    I said Tillman should have sold shares of the Rockets to Beyoncé back on day one after his acquisition
    of the Rockets.

    Looking back, Music and Entertainment can survive a pandemic better than food service and casinos.
     
  19. Jontro

    Jontro Member

    Joined:
    Feb 3, 2010
    Messages:
    26,795
    Likes Received:
    8,496
    after taxes, would come out to about 4.7 million. tillmen broke.
     
  20. RocketsFido

    RocketsFido Member

    Joined:
    Oct 31, 2013
    Messages:
    5,782
    Likes Received:
    5,054
    I'm already ready for the 10 year cheap ass rebuilds... but it's going to be a rough one.
     
Loading...

Share This Page

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now