Apollo closer to Venetian acquisition

The $6.25bn sale of Las Vegas Sands’ Venetian, Palazzo and Venetian Expo Center in Las Vegas to Apollo Global and VICI Properties is one step closer as the Nevada Gaming Control Board recommended approval.

Apollo is buying operations for $2.25bin while VICI is buying the real estate for $4bn. The matter will have to go to the state’s gaming commission, which is set to meet on February 17.

The approval did not come without discussion of concerns regarding Apollo’s acquisition of the former Caesars in 2008 and subsequent sell-off and bankruptcy.

“Caesars has not been our most successful investment, but gaming has been a core focus of ours,” co-head of private equity David Sambur said. The Venetian deal is going to be the opposite of this in every way, shape and form.”

The Venetian has a low net-debt-to-EBITDA of about 2.85 times with a very high interest coverage that could be rapidly reduced to below two times, Sambur said. This financial structure is flexible and there is no prospect of defaulting, he added.

Source: Fantini’s Gaming Report