Two Way Hard Three | Las Vegas Casino & Design Blog

All Articles Published: November 2012

November 25, 2012

Open Topic Discussion: November 25th, 2012

Posted by Hunter

Based on popular request, I'm starting an open topic discussion post. Feel free to chime in on any subtopic that interests you. To kick things off:

- With the storm wrecking Atlantic City, is Revel doomed and if so, what happens then?

- Fremont Street are putting in a larger zipline and giant slot machine. Will this draw in customers?

... and lastly ...

- Planning to be in Vegas for Christmas? Share some of your favorite things to do on the Strip or Downtown over the holidays.

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Categories: Open Topics


November 16, 2012

SLS Las Vegas: Funding for Green Cards

Posted by Hunter

Thanks to some new analysis from Standards & Poors, we have more insight and more visibility into how SBE Entertainment plans to fund their SLS Las Vegas project. That funding may come from a little known US Government program where foreign nationals may invest in US businesses in exchange for immigration status.

The program, known as EB-5 (or an EB-5 visa) was originally instituted by Congress in 1990 and since then has been renewed several times, including by President Obama in September 2012. The program allows foreign investors willing to invest (typically $1,000,000 but as little as $500,000 in some areas, including Vegas for SLS) the opportunity to secure Green Cards, not only for themselves for also for their immediate family members. It's a fast track for preferred immigration status based on investments that are designed to employ Americans. A reward for invested capital from the United States of America. This type of investment has been used for casino concepts in the past.

In the case of SLS, Standards & Poors estimates that their EB-5 money, if it comes through, will make up the majority of the $115 million in junior investment that they need to raise in order to unlock the $300 million that is already comitted by the primary lenders. The good news for SBE is that these types of investors typically only get about 5% interest, lower than what borrowers would have to pay on the open market for a junior note against a project that S&P has determined is 'highly leveraged' and has 'average' liquidity, as they have with SLS Las Vegas.

Cheaper money means that SLS, currently scheduled to open in 2014, will have an easier time making their numbers in those crucial first 8 quarters of operation. Actually, S&P has so baked these advantages into their analysis that they state in their report that a failure of this funding coming through could cause a downgrade - the rates SBE would likely have to pay in traditional markets would be higher and less forgiving.

So, now we wait.

The $300 million currently in escrow goes back to the lenders if SBE/SLS cannot raise the $115MM over the course of the next three months.

Thanks to VegasTripping.com and FiveHundy for the original tip.

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Categories: SLS Las Vegas


November 15, 2012

Vegas Gang #84 - November 15th, 2012

Posted by Hunter

Episode #84 is up!

Listen here: Vegas Gang Podcast

This time on the show:

- Hurricane Sandy and Atlantic City
- Election 2012 Impact on Gaming
- Wynn Cotai Starts Up
- Cantor Sports Book Employee Arrest
- SBE

** Sure Bets **

Chuck - David Lee Roth Podcast - TheRothShow
Dr. Dave - 'Long Wave' by Jeff Lynne @ iTunes | Amazon and ELO's 'Mr. Blue Sky' @ iTunes | Amazon
Hunter - Letterpress for iOS

Feel free to leave your comments at the link below. If it's a question that you want asked on the show, please make that clear in your post. You can also send those to editor@ratevegas.com.

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Categories: Podcasts, Vegas Gang Podcast