LAS VEGAS An agreement announced last week between the Maloof family and two private investment groups to lower the debt load on Palms Casino Resort will reduce the family’s stake in the 10-year-old property to just 2%.
Once the financing deal with TPG Capital and Leonard Green & Partners is approved by Nevada gaming regulators, the Maloofs—the developers and original owners of the trendy near-Strip resort—will control just 2% of the property. The remaining 98% will be divided equally between Leonard Green and TPG, which also owns about half of Caesars Entertainment Inc.
Still, the Maloofs’ involvement with Palms is expected to continue. According to a Sacramento Bee report, the deal includes a series of options and warrants giving the family the right to buy additional equity in the future. The Maloofs could eventually reclaim up to 20% of the 1,300-key property, George Maloof says.
The Maloofs also own the Sacramento Kings of the National Basketball Association.