Red Rock Resorts Amends Credit Agreement, Reducing Interest Rates

Red Rock Resorts, Inc. (NASDAQ:RRR) reported today the entry into an agreement that significantly impacts its financial structure. On December 18, 2024, the company’s subsidiary, Station Casinos LLC, inked a First Amendment to Amended and Restated Credit Agreement. This Amendment was established among Station Casinos LLC, subsidiary guarantors, Red Rock Resorts, Inc., Station Holdco LLC, the lenders, and Deutsche Bank AG Cayman Islands Branch serving as the administrative agent.

The newly amended agreement addresses the existing term B loan facility totalling approximately $1.54 billion held by the Company. Noteworthy changes include a reduction in the interest rate margins. The amendment offers the Company the flexibility to choose between two options for the applicable interest rate margins. This involves either referencing the forward-looking Secured Overnight Financing Rate term rate known as “Term SOFR,” with a 0.0% floor, or opting for a base rate (“Base Rate”) determined by the highest of the federal funds rate plus 0.50%, the Administrative Agent’s “prime rate,” or the one-month Term SOFR rate plus 1.00%, along with an applicable margin, established at 2.00% per annum for Term SOFR loans and 1.00% per annum for Base Rate loans.

It is important to note that the representations, warranties, and covenants specified in this Amendment were solely made for its purposes and are subject to agreed-upon limitations between the contracting parties involved. Investors should be aware that they are not third-party beneficiaries of the Amendment and should not rely on the contained details as a complete reflection of the Company’s current state of affairs.

The description outlined here does not claim to provide a comprehensive overview of the Amendment and is supplemented by the full text of the Amendment filed as Exhibit 10.1 in the documentation. This Amendment is a critical financial move and underscores Red Rock Resorts, Inc.’s ongoing efforts to optimize its financial mechanisms.

In accordance with this agreement, the Company filed the necessary Supplementary Financial Statements and Exhibits as per Item 9.01. The specific details of these exhibits can be found in the official filing released by Red Rock Resorts, Inc. on the specified date.

Red Rock Resorts, Inc. remains committed to maintaining transparency and adherence to requisite financial regulations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Red Rock Resorts’s 8K filing here.

About Red Rock Resorts

Red Rock Resorts, Inc, through its interest in Station Casinos LLC, develops and operates casino and entertainment properties in the United States. The company owns and operates gaming and entertainment facilities, including Durango Casino & Resort and smaller casinos in the Las Vegas regional market.