Station Casinos' owners are studying the possibility to invest more funds into the company to keep the business on float during the current economic crisis affecting the hotel and gaming industry. According to a case filed with the Securities and Exchange Commission, the company owners could inject between $450 million and $500 million and execute a private debt exchange as part of a plan to reduce the company’s debt load and resulting interest expenses. Currently, Station Casinos carries about $5.4 billion in long-term loans, which represented a total of $281.9 million in interest expenses during the first three quarters of the year.

The filing does not mention which of the two owners, the Fertitta family or the L.A real estate company, Colony Capital, will invest the mentioned funds. Colony Capital owns 75.9% of the company while members of the Fertittas family own the remaining 24.1%.

In addition, Station Casinos’ owners also announced the possibility to issue at list two secured term loans due in 2016, reducing the maturity date and terms in about four years. The private debt exchange of up to $459 million would include five sets of unsecured notes valued in $2.088 billion and with rates varying from 6% to 7.75%. An undisclosed number of unsecured notes, which last week were trading at $0.08, are being offered to be purchased back at a minimum of $0.54.

Station Casinos' currently operates one casino and owns more than a dozen properties including the recently opened Aliante Station, Texas Station Gambling Hall and Hotel, Sunset Station Hotel and Casino, Boulder Station Hotel and Casino, Red Rock Casino Resort and Spa, Santa Fe Station, Palace Station Hotel & Casino and Green Valley Ranch Resort and Spa.

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