PJT Partners

And in order to be able to meet its upcoming pack season obligations, it had to get financing.

So the company hired PJT sometime like in the spring of 2024, which undertook a market process to try to obtain funding.

Ultimately, after they reached around to various parties to try to get funding, the company entered into a two-step liability management transaction that raised $240 million in new money that was used for the operations.

In doing that transaction, it was sort of a drop down of substantially all the assets to a newly formed subsidiary that issued the debt and the existing debt was exchanged into debt at the new box.

So we needed both something that would address the revolver aspect of liquidity need, but also a new money term loan.

And so we went out to market.

And when I say we, I really mean PJT, who was the company's investment banker.

They were looking for dip lenders who could address both of those issues and also work within the existing capital structure and the priming issues that we were going to have.

Um, one can make the case that we may have somebody, we may not have somebody, and now it's put us in a different position than what we were before.

I think our model is differentiated, and I think you're gonna see more of this, is instead of it being, you know, a governor and somebody else, uh, what is a team of experts that can be pulled together, uh, in addition to capital? And I know, you know, PJT's really good at this, uh, kinda like keeping, um, you know, LPs kind of separated for a while until you find the right partner.

But I, I think you're gonna see more of this as we think about team ownership and these valuations keep going up, and I think that's been our approach is put together a series of experts from different fields alongside capital, uh, then once finding the right partner, can be utilized in order to handle the magnitude of this project.

I mean, obviously that's a new stadium being built, the political ties in Vegas, um, a lot of the thoughts around who are the people on the ground that help those political ties, um, because this is a relationships business as well, in addition to money, and I think we recognize that with some of the team members that were announced publicly as opposed to also some of the team members that we kept privately.

We got introduced to...

Raj already knew Andy, but Andy and Nash Patel over at PJT Partners.

We talked to them, had maybe some cursory conversations with others, but we decided, hey, yeah, let's go with you guys.

Let's do this.