Boyd Gaming announces stock sale

1 August 2013

LAS VEGAS -- Boyd Gaming Corporation announced a stock sale Wednesday in which the casino operator will list 15 million shares of common stock, with proceeds from the sale used to pay down a portion of the company’s long-term debt.

The announcement came after the close of trading on the New York Stock Exchange and the day after the company reported better-than-expected quarterly earnings.

The move took some analysts by surprise.

Macquarie Securities gaming analyst Chad Beynon said Boyd’s stock price has grown 135 percent in the past 12 months, largely a result of operating leverage potential, the company’s online gaming opportunity in New Jersey and the $1.3 billion acquisition of Peninsula Gaming last year.

“We believe the company wants to take advantage of current valuation as well as strong momentum and reduce the leverage at the parent company,” Beynon said.

Shares of Boyd Gaming closed at $13.31 on Wednesday, up 46 cents, or 3.58 percent.

Boyd Gaming, which operates casinos in downtown Las Vegas and the Coast casinos brand, said the underwriters of the stock sale have a 30-day option to purchase an additional 2.25 million shares.

Boyd Gaming has 90.3 million shares outstanding, and the stock offering reflects 17 percent increase. The company has $4.6 billion in long-term debt.

“Although we estimate that the offering may be slightly dilutive, we believe it is important for Boyd to address its high leverage and near-term debt maturities,” RBC Capital Markets gaming analyst John Kempf told investors.

In addition to paying down debt, Boyd Gaming said it would use the proceeds from the sale for “general corporate purposes.”

Beynon speculated the company might seek other acquisitions in the regional casino market.

In addition to the Peninsula deal, which gave Boyd five casinos in three markets, the company bought the IP in Biloxi, Miss., in 2011 and sold the Dania Jai-Alai property in Florida and the Echelon site on the Strip last year.

“The regional gaming market continues to be ripe with acquisitions, and we wouldn’t be surprised to see Boyd look to diversify even further,” Beynon said.

Related Links
Boyd Gaming Gaming Vendor Information


Copyright GamingWire. All rights reserved.
Featured Vendors
Oklahoma Indian Gaming Association (OIGA) Conference
Betson Imperial Parts & Service
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: August 12-14, 2024 Oklahoma City
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
Regulatory Management Counselors, PC
Goldfinger Monitors
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
Goldfinger Monitors
Innovative touch-screen solutions - vibrant lighting, high-def imagery, bright, bold colors
AmericanChecked
TribalHub
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
TribalHub
25th Annual TribalNet Conference Sept 16-19, 2024 Westgate Las Vegas
Casino Schedule Ease
Sunkist Graphics, Inc.
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
Indian Gaming Tradeshow & Convention
Casino Trac - Table Trac, Inc.
Indian Gaming Tradeshow & Convention
The largest gathering of tribal leaders and casino executives in the United States
Casino Trac - Table Trac, Inc.
CasinoTrac™ is a full CMS platform, operating in 225 locations, across 13 countries, since 1995.
House Tech Ads
Dable Advisory & Consulting Services
House Tech Ads
Drive quality casino-gambling traffic to your brand from over 70 countries from our premium assets!
Dable Advisory & Consulting Services
Advisory & consulting services services for Indigenous entrepreneurs, businesses & organizations
Top One Tech Limited
Slot Machines Unlimited
Top One Tech Limited
GLOBAL TOUCH SOLUTION PARTNER OF CHOICE,10+ years OEM manufacturing,100+ thousand units application
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
GamblersPick
Casino City Press
GamblersPick
Share & Read other players' reviews! A top player community-driven portal for online casinos.
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Casino Network
Kallop
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Kallop
Reward every play like a VIP with exclusive luxury brands at affordable prices.
OCR - Online Casino Reports
OCR - Online Casino Reports
Delivers highly targeted casino traffic from over 70 countries! Get your casino listed today at OCR!


Your Guide to 14,890 Gaming Industry Suppliers