Station Casinos

February 4, 2009

            Station Casinos [STN.UL] missed a $14.6 billion bond interest payment on its debt Feb. 2nd and said it may consider filing for bankruptcy under Chapter 11 as part of a restructuring plan, as the deepening U.S. recession batters the gaming sector.

            According to Bloomberg, the company offered investors 10 cents to 50 cents on the dollar in secured notes and cash, in exchange for about $2.3 billion of existing bonds. If enough bond holders accept the plan, the company said it may decide to implement the reorganisation under Chapter 11.

As part of the proposal, affiliates of the Fertitta family and Colony Capital have agreed to invest as much as $244 million to maintain their current ownership stakes. Deutsche Bank AG and JPMorgan Chase & Co. affiliates provided debt financing commitments. Station had $5.35 billion in long-term debt as of Sept. 30, according to a regulatory filing.

Station Casinos fourth-quarter revenue fell about 19 percent to $290 million from a year earlier.

Sources and Related Links:

• Station Casinos Proposes Prepackaged Bankruptcy to Cut Debt
• Station Casinos misses payment, considers bankruptcy

**This is for informational purposes only.  This is not a recommendation.**

For bond pricing, call your APS Financial Representative at (888)422-0633

The information provided is from sources believed to be reliable, but we cannot give assurance as to the accuracy or completeness.  By providing this general information, APS Financial Corporation (“APSF”) is suggesting neither a recommendation as to the appropriateness of investing in the securities, nor are we providing any specific investment advice for any particular investor.  These investments will be sold to qualified investors only.