Tilman Fertitta's Golden Nugget IPO issues come during a rocky period of his Rockets ownershipGetty Images
Rockets Owner Tilman Fertitta’s plan to take his Golden Nugget restaurant and casino business public "appears to be getting the cold shoulder on Wall Street," as the debut is "no slam dunk due to the company’s staggering $4 billion in debt and its sagging sales," according to Josh Kosman of the N.Y. POST. Before the pandemic, Fertitta had been "discreetly shopping a stake of up to 49 percent in the Golden Nugget franchise." There was "some interest in the casino business but not the restaurants because Fertitta had been seeking a multiple of more than 10 times earnings." Sources explained that the problem is that there "appears to be little value in Golden Nugget beyond the debt, which stands at about $4 billion -- much of it taken in 2017 to finance a $1.4 billion dividend to Fertitta so he could buy the Rockets for $2.2 billion." Kosman notes Fertitta’s woes "come during a rocky period for him as owner of the Rockets." Fertitta reportedly has "weighed reducing the NBA team’s payroll as the pandemic continues to crush ticket sales" (N.Y. POST, 1/4).
