Tilman Fertitta, a Texas billionaire who owns a gaming and restaurant empire, is offering 15 percent interest to lenders willing to help him stay afloat until the pandemic recedes—which he figures will be around the end of the year.
He seeks $250 million in what is being described as a “risky corporate loan.” Fertitta owns the Golden Nugget casinos, which are closed, and a restaurant line called Landry’s Inc., which are all closed to indoor dining.
The loan will mature in October 2023. Fertitta has already drawn $300 million from existing credit and loaned himself $50 million, according to sources who declined to be named. Fertitta and his companies declined to be interviewed or to comment on the story.
The loan is being offered through Jefferies, which has had a long association with Fertitta’s businesses. Last year Golden Nugget used Jefferies to complete a $300 million loan it used to Aqure Del Frisco’s Double Eagle Steakhouses and Del Frisco’s Grilles.
Moody’s Investors Service March 24 downgraded the Golden Nugget from B2 to B3 due to expectations of lower earnings due to the closures.
