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GDEN

Golden Entertainment

$16.93

-0.21 (-1.23%)

, GS

Goldman Sachs

$222.44

3.68 (1.68%)

07:09
06/12/17
06/12
07:09
06/12/17
07:09

Golden Entertainment to acquire American Casino & Entertainment properties

Golden Entertainment (GDEN) announced that it has entered into a definitive agreement to acquire American Casino & Entertainment Properties, which owns three properties in Las Vegas including the Stratosphere Casino, Hotel & Tower, Arizona Charlie's Decatur and Arizona Charlie's Boulder, as well as its fourth property, the Aquarius Casino Resort in Laughlin. American is expected to generate approximately $413M of net revenues and $103M of EBITDA in 2017, and Golden expects to achieve approximately $18M of annual run-rate synergies post-closing. The purchase price of $850M includes working capital cash estimated to be approximately $28M at closing. The purchase consideration will consist of $781M cash plus approximately four million shares of Golden stock issued to American's current owner, Whitehall Street Real Estate Partners 2007, a real estate private equity fund managed by the Merchant Banking Division of Goldman Sachs (GS). The number of shares issued to Whitehall was determined based on Golden's 10-day volume weighted average price of $17.05 as of June 9. Upon closing, Whitehall will own approximately 15% of Golden's diluted shares outstanding. The transaction is expected to be immediately accretive to Golden's operating results, increasing free cash flow and earnings per share significantly. Based on American's estimated 2017 EBITDA, the acquisition represents an 8.0x pre-synergies multiple and a 6.8x post-synergies multiple. Pro forma for the completion of the transaction, the combined company would generate approximately $847 million of net revenues in 2017 and approximately $180M of EBITDA in 2017, including $18M of estimated run-rate synergies. The transaction is not subject to a financing condition. Golden has received committed financing totaling $1.1B from JPMorgan Chase Bank, Credit Suisse, Macquarie Capital and Morgan Stanley to fund the cash consideration as well as to refinance Golden's existing credit facilities. The financing commitment includes a $100M revolving credit facility to support Golden's future organic and strategic growth initiatives. The transaction is subject to customary regulatory approvals and is expected to close by the end of 2017.

GDEN

Golden Entertainment

$16.93

-0.21 (-1.23%)

GS

Goldman Sachs

$222.44

3.68 (1.68%)

  • 12

    Jun

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    Oct

GDEN Golden Entertainment
$16.93

-0.21 (-1.23%)

05/15/17
RHCO
05/15/17
DOWNGRADE
RHCO
Hold
Golden Entertainment downgraded to Hold from Buy at SunTrust
SunTrust analyst Patrick Scholes downgraded Golden Entertainment to Hold and increased its price target to $16 from $15 saying shares appear fairly valued at current levels.
02/10/17
RHCO
02/10/17
UPGRADE
RHCO
Buy
Golden Entertainment upgraded on positive catalysts, valuation at SunTrust
As noted earlier, SunTrust upgraded Golden Entertainment to Buy from Hold. As reasons for the upgrade, analyst C. Patrick Scholes cited valuation, its ability to make acquisitions in the distributed gaming sector, its ability to open new taverns, and its ability to attract younger customers than most regional gaming companies. Target to $14 from $12.
02/09/17
RHCO
02/09/17
UPGRADE
RHCO
Buy
Golden Entertainment upgraded to Buy from Hold at SunTrust
08/19/16
RHCO
08/19/16
INITIATION
RHCO
Neutral
Golden Entertainment initiated with a Neutral at SunTrust
SunTrust analyst C. Patrick Scholes started Golden Entertainment with a $13 price target and a Neutral rating.
GS Goldman Sachs
$222.44

3.68 (1.68%)

06/09/17
RBCM
06/09/17
NO CHANGE
RBCM
House financial reform bill unlikely to advance in Senate, says RBC Capital
RBC Capital analyst Gerard Cassidy says that the financial regulation reform bill passed yesterday by the House would help the banking sector but probably won;t be passed by the Senate. Large publicly traded banks include Bank of America (BAC), Citi (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), U.S. Bancorp (USB) and Wells Fargo (WFC).
06/02/17
NOMU
06/02/17
NO CHANGE
NOMU
Goldman Sachs, Morgan Stanley Q2 EPS estimates lowered at Nomura Instinet
Nomura Instinet analyst Steven Chubak cut his Q2 EPS estimate for Goldman Sachs (GS) to $3.50 from $4.04 and lowered his Q2 EPS estimate for Morgan Stanley (MS) to 77c from 86c. The consensus EPS estimates for Goldman and Morgan Stanley are $3.92 and 84c, respectively. Chubak says that Goldman has been hurt by "weaker trading and more pronounced (investment banking) declines," while Morgan Stanley is experiencing "softer" investment banking results and "more pronounced quarter-over-quarter" fixed income declines. He keeps a Neutral rating on Goldman and a Buy rating on Morgan stanley.
04/20/17
04/20/17
UPGRADE

On The Fly: Top five analyst upgrades
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Starbucks (SBUX) upgraded to Buy from Hold at Stifel with analyst Mark Astrachan saying he views valuation as attractive and expects multiple expansion from accelerating U.S. comparable store sales growth to at least 5%-6% for the next four quarters starting in the June quarter. The analyst said shares have underperformed consumer and restaurant peers over the past 12 months and expects outperformance to be driven by meeting comp expectations. 2. Goldman Sachs (GS) upgraded to Overweight from Neutral at Atlantic Equities with analyst Christopher Wheeler telling investors investors shares are "oversold." The analyst expects the FICC business to bounce back and made just a small reduction in estimates to account for further cost measures. 3. Lear (LEA) upgraded to Outperform from Neutral at Baird with analyst David Leiker citing its recent underperformance despite improving fundamentals and a strong global auto backdrop. Leiker raised his price target to $161 from $160 on Lear shares. 4. Discovery (DISCA) upgraded to Neutral from Sell at Citi with analyst Jason Bazinet saying he sees little chance of material downward revisions to consensus earnings estimates. The analyst views the risk/reward as more balanced at current levels and upped his price target for the shares to $30 from $27. 5. Gap (GPS) upgraded to Neutral from Underweight at JPMorgan with analyst Matthew Boss citing the underperformance of the shares over the past 18 months and his fieldwork which suggests stability at Old Navy. The analyst raised his price target for the shares to $24 from $21. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
04/20/17
ATLE
04/20/17
UPGRADE
Target $252
ATLE
Overweight
Goldman Sachs upgraded to Overweight, shares 'oversold,' says Atlantic Equities
Atlantic Equities analyst Christopher Wheeler upgraded Goldman Sachs to Overweight from Neutral and lowered his price target to $252 from $254 telling investors investors shares are "oversold." The analyst expects the FICC business to bounce back and made just a small reduction in estimates to account for further cost measures.

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