Full House Resorts pursues financing for permanent American Place casino

Full House Resorts, Inc. disclosed that it is in advanced discussions to secure financing for the construction of a permanent American Place casino in Waukegan, Illinois. The company is negotiating with a major financial institution willing to fund all construction costs for the new facility, which is expected to be significantly larger than the current temporary casino. The financing push comes as the stock trades at $0.94, near its 52-week low of $0.92, with shares down 65% over the past year.

According to an SEC filing, Full House Resorts is also in talks with existing and potential bondholders and lenders to refinance its outstanding 8.25% Senior Secured Notes due 2028. The contemplated refinancing includes a private offering of approximately $525 million in new senior secured notes due 2031 and a new $100 million revolving credit facility. The refinancing effort is critical given the company's current ratio of 0.62 and total debt of $527 million against a market capitalization of just $35 million. Despite these challenges, InvestingPro analysis suggests the stock may be undervalued at current levels.

The company indicated that proceeds from these transactions would be used to redeem the existing notes, repay the current credit facility, cover the construction costs of the permanent casino, pay related fees and expenses, and for general corporate purposes. Full House Resorts noted that it has provided certain prospective investors with confidential information regarding these plans and is now publicly disclosing this information. The company emphasized that discussions regarding financing and refinancing remain ongoing and that any final agreements are subject to the execution of definitive documentation. It also stated that there is no assurance that any of the transactions will be completed. This information is based on a press release statement contained in a Form 8-K filing with the U.S. Securities and Exchange Commission.

In other recent news, Full House Resorts reported disappointing financial results for the second quarter of 2026. The company missed Wall Street expectations, with earnings per share at negative $0.24, falling short of the anticipated negative $0.16. Revenue was also below forecasts, reaching $78.1 million compared to the expected $80.64 million. Despite this, revenue still showed a 5.6% increase year-over-year, and adjusted EBITDA rose by 19.5%. American Place emerged as the strongest property, with a 13.4% increase in revenue and a 13.8% rise in EBITDA. Chamonix also showed improvement, with revenue up nearly 12% and EBITDA nearing breakeven. Citizens, a financial services firm, adjusted its price target for Full House Resorts from $4.00 to $3.00 following these results, while maintaining a Market Outperform rating. The company is moving closer to refinancing and constructing its permanent casino in Waukegan, Illinois.

(Source：Investing Philippines)