Partly, yes ... but it’s spelled out in filings what this really is. this is a shell game to funnel the April loans to GNI. The gaming license is just the legal asset to make it legit to go public to pay off loans while keeping GNI private. Here’s a layman’s explanation of the GNI loan shell maneuver from a recent filing of Golden Nugget Atlantic City, LLC. On April 28, 2020, GNOG entered into a term loan credit agreement that is comprised of a $300.0 million interest only term loan due October 4, 2023. Proceeds received from the term loan were sent to an indirect subsidiary of FEI, who issued us a note receivable due October 2024 to GNI with substantially similar terms as our credit agreement. The proceeds were in turn loaned to GNI under substantially identical terms. The note receivable from an indirect subsidiary FEI is accounted for as contra-equity, similar to a subscription receivable, with interest and accretion of the original issue discount accounted for as additional capital contributions. Both the term loan and the note receivable were issued at a 4% discount. The term loan and associated note receivable both bear interest at LIBOR plus 12% and interest payments are made quarterly. The term loan is secured by the note receivable which effectively, but indirectly provides pari passu security interest with GNI’s senior secured credit facility.
Incredible what you can do when you have friends at banks. Dude is definitely amazing at over-leveraging himself and maneuvering financial bylaws. If you're in to cars, Tilman is something like taking a 2.5L 4-cylinder engine and bolting turbos and superchargers until you can compete with the V8s and V10s, but there's a risk of meltdown at any moment.
Wow. Fertitta is a thimblerig, a slight of hand artist. “Watch closely! Now, which shell is the pea under?”
The Leagues and their billionaire owners are all horrified by the Packers and forbid this happening. I would like to see the teams , also I assume forbidden, to be able to offer the true franchise player something like say a 5-10% ownership in the team after retirement. For instance James could get that type of ownership promise if in two years he signed a 5 year contract extension. I think it would be good to see more Kobie and Nowitzki type players who spend all or almost all of their career with one team instead of the trend for the superstars to sign on one or two year contracts and move around.
The equivalent to a normal working class pud being short on the mortgage ...so he doesn't pay his car note.....and to pay his car note he maxes out his credit card..... to pay off his credit card he gets a second credit card at a higher interest rate.... the second credit card is due so he borrows money from his family... now his family wants their money so he got a loan from a Pay Day loan company and he is using the equity in his house to pay back the loan and his mortgage will be due again in a week.
Is this type of ingenuity common during these times of the pandemic? I don’t know, or have sought out, many business capital maneuverings such as this
