Tilman Fertitta To Pocket $250M As His Company Refinances Debt
Billionaire and Fertitta Entertainment CEO Tilman Fertitta will enjoy a $250M payday from his company weeks after pulling out of a deal to go public.
The founder and sole owner of Fertitta Entertainment is borrowing $5.6B in bond and loan markets as it refinances debt, according to Bloomberg, which notes cash is flowing to companies like Fertitta’s that notched hefty profits when consumers began traveling and eating out again last year.
Comments made by Fertitta in an investor call suggested to debt investors that the company's profits are growing enough that the deal to go public was undervalued. Fertitta Entertainment made a record $900M in adjusted earnings last year, Bloomberg reported. Still, overall revenue for the company is below pre-pandemic.
Fertitta announced he had backed out of the $8.6B deal to take the company public last month. Fertitta paid $33M to back out.
The merger was meant to be with special-purpose acquisition company FAST Acquisition and had been planned since early 2021.
"I have a lot of respect for the FAST team and will support them however I can as they continue to search for a merger target,” Fertitta said in a previous statement. “At the end of the day we ultimately determined that the right decision for my company was to remain private at this time, and I look forward to continuing to grow our business both organically and in-organically."
Fertitta Entertainment includes Landry's and Golden Nugget Hotel & Casinos.
