Private-equity Firm to Take Over Las Vegas Tropicana

LAS VEGAS, NV - As reported by the Wall Street Journal: "Canada's largest private-equity firm is rolling the dice in Las Vegas.

Toronto-based Onex Corp. said it plans to take control of the
The Tropicana Las Vegas will be going under a $100 million renovation  Tropicana Resort & Casino on the Las Vegas Strip when the hotel emerges from bankruptcy protection later this year.

The publicly traded buyout shop positioned itself to take over the Tropicana by accumulating debt at a discount, according to a securities filing. Onex paid less than $200 million for a stake in Tropicana's senior loans, which are secured by the hotel property.

Private-equity firms have been snapping up ailing businesses by buying their debt on the cheap and then negotiating to turn that debt into a controlling equity stake.

Onex has partnered with former MGM Mirage executive Alex Yemenidjian, who will be Tropicana's new chief executive.

"We've got our work cut out for us but Alex is one of the proven managers on the Vegas strip," said Tim Duncanson, a managing director at Onex..."