Red Rock Resorts (Red Rock) has announced an agreement with its subsidiary Station Casinos LLC and a subsidiary of the San Manuel Band of Mission Indians (San Manuel) to sell the Palms Casino Resort for $650m in cash.
The deal for the Las Vegas casino is subject to regulatory approval, but is expected to be completed in the near future.
Milbank LLP represented Red Rock and Deutsche Bank Securities Inc. is acting as financial advisor to Red Rock on the transaction, whilst Latham & Watkins LLP represented San Manuel and Jefferies LLC is acting as its financial advisor.
Red Rock will be looking to recoup as much money as possible from the sale, after a difficult 2020 saw its revenue fall 36.3%.
San Manuel on the other hand is looking to strengthen its foothold within Las Vegas after sponsoring both the Las Vegas Raiders American Football team and its Allegiant Stadium since 2020.