FAST Acquisition Corp. (FST) stock prices surged by 16.51% shortly after market trading commenced on July 1st, 2021, bringing the price per share up to USD$13.76 early on in the trading day.
Merger with Fertitta
June 30th, 2021 saw the company announced an amendment to their previously announced Agreement and Plan of Merger with Fertitta, which the companies entered into February 1st, 2021. As per the agreement, FST will contribute certain operating businesses, for no additional debt, that were not originally included as part of the business combination with FST. The amendment will see the addition of 42 incremental, high-quality business assets.
About Fertitta
The revised transaction will result in Fertitta Entertainment becoming one of the largest publicly traded hospitality companies with 5 land-based casinos, as well as significant ownership of Golden Nugget Online Gaming, Inc. The company also has more than 500 restaurants, amusements, hotels, entertainment venues, and other business units spread out across 38 U.S. states, Puerto Rico, Hong Kong, China, Mexico, Singapore, as well as several licensed restaurants throughout the world.
Financial Reports
The company also announced preliminary pro forma financial results for the quarter ended June 30th, 2021. Revenues for the quarter are forecasted to be in the range of USD$917 million to USD$920 million, while adjusted EBITDA is expected to be between USD$270 million and USD$275 million. Full-year 2021 pro forma adjusted EBITDA is expected to be greater than USD$800 million
Agreement Amendments
The amendment to the transaction includes an enterprise valuation for Golden Nugget/Landry’s in the amount of almost USD$8.6 billion. This enterprise value is inclusive of the value of the GNOG equity that is expected to be contributed to the company, with the trading price of each share assumed to be roughly USD$13.00 for each GNOG share. This price will be subject to adjustment based on the closing price average for the past 60 days. Cash proceeds from the transaction are forecasted to be comprised of FST’s USD$200 million of cash in trust. Furthermore, shareholders will invest USD$1.24 billion in the form of a PIPE at a price of USD$10.00 per share of common stock.
Future Outlook for FST
Armed with an expansion of the partnership with Fertitta, FST is poised to capitalize on the additional opportunities that now lay before it. The company is keen to continue its trajectory of success and usher in unprecedented growth over the long term.
