Firm Advises on Takeover of Palms Casino Resort in Las Vegas

June 22, 2011

Maloof family reaches recapitalization agreement with the Palms Casino’s secured creditors -- Willkie clients Leonard Green & Partners and another large private equity firm.

It was recently announced that Willkie clients Leonard Green & Partners and another large private equity firm have agreed to acquire substantially all of the assets of the Palms Casino Resort in Las Vegas. Following receipt of required regulatory approvals and upon consummation of the definitive transaction documents, affiliates of the private equity firms will contribute their approximately $440 million in secured debt in exchange for a controlling stake in the resort. Funds of TPG and Leonard Green are the Palms’ main secured creditors. The agreement with the Palms Casino and the Maloof family will result in the cancellation of the Palms’ debt, leaving the casino debt-free. The trendy resort, which opened in 2001, consists of a world class casino and hotel and condominium towers, with premier restaurants, nightlife and other renowned entertainment venues.

The deal was handled by Willkie’s Business Reorganization and Restructuring and Corporate and Financial Services Departments. The team included partners Matthew Feldman, Paul Shalhoub, Mark Cognetti and Christopher Peters, and associates Manuel Miranda, Marit Spekman, Richard Choi, Jordan Messinger and Zachary Lerner.