Fertitta Leisure Provides Property to SPAC Deal

From Dave Sebastian

Fertitta Entertainment Inc., a holding company for Golden Nugget Casinos and Landry’s Restaurants, is adding additional assets to the deal with the special acquisition company that will bring Fertitta public, the companies said.

Fertitta said she agreed to bring in the Mastro brand, the Aquariums, the Pleasure Pier, Vic and Anthony’s, and a handful of others, adding a total of 42 goodwill that was not originally included in the transaction announced in February. It also said it will acquire Catch restaurants, including Catch Steak, the restaurant group of which is 50% owned by Fertitta owner Tilman Fertitta.

The company will bring in the operational business without additional debt, it said. Mr. Fertitta will receive additional equity in the combined company and his total equity interest upon completion of the transaction with Fast Acquisition Corp. increase to about 72%.

The amended transaction results in a company valuation for Golden Nugget / Landry’s of approximately $ 8.6 billion, the companies said. Fertitta expects to use the proceeds from the transaction to accelerate its growth initiatives, fund its operations and reduce its existing debt.

“The contribution of the new business assets significantly improves the company’s operating cash flow, provides better assets for organic growth, and makes the company much less of a debt as the company does not incur any additional debt as part of the revised transaction,” said Fertitta.

Fertitta said sales for the three months ended June 30, including additional assets and business units, are expected to be $ 917 million to $ 920 million. It provides for adjusted earnings before interest, taxes, depreciation, and amortization of $ 270 million to $ 275 million for the quarter or more than $ 800 million for the full year with the contribution or acquisition of all operations on Jan. 1 was completed. 2021.

The companies expect the deal to close in the fourth quarter.

Write to Dave Sebastian at dave.sebastian@wsj.com