• Las Vegas Billboards – Acquisitions and Refinancing

    Insider noted a press release today from Las Vegas Billboards (LVB).  Here is a portion of the release.

    Locally owned billboard company launches aggressive growth campaign

    LAS VEGAS – March 6, 2018 – Las Vegas Billboards LLC acquired two high-profile Las Vegas billboards for an undisclosed price, giving it 20 digital billboard faces to complement its traditional static inventory. This addition makes LVB the largest independent local family-owned digital billboard company in the Las Vegas Valley.

    The new billboards are at:

    4480 Paradise Road — across from the Hard Rock Hotel at the intersection of Harmon Avenue and Paradise Road
    7750 Dean Martin Drive Drive — visible from Interstate 15 and Blue Diamond Road

    Insider also knew that LVB had recently completed a debt refinancing and wanted to share our conversation on the process with both Chad Harris, co-founder of LVB and Gabe Oliverio of Johnsen Fretty.

    You recently completed a refinance of the debt structure for your business.  What were the key factors that drove your decision to look for a new debt partner?

    Chad Harris

    Chad: We had a very positive prior lending experience but had maxxed out in terms of borrowing needs.   Part of our capital raise was to refinance existing debt but most of the financing was for growth purposes.  Given our growth plan of strategic acquisitions and new digital deployments, fresh capital was imperative. We see an exciting opportunity to take advantage of the new boom in the Las Vegas market.  The two main things we were looking for from a debt partner was someone that inherently understood the outdoor business and could scale with us.

     

    Access to debt tends to run in cycles as to quality and availability.  How would you describe the current debt market?  

    Gabe Oliverio

    Gabe: The debt market is actually very good for qualified buyers.  From a pricing standpoint, though interest rates have ticked up recently, we are still in an historically low rate environment.  Lenders are active and putting forth attractive deals.  That being said, were not seeing the type of “covenant-lite” go-go deals that showed up in the 2005-2007 timeframe.

    Did you find anything unexpected about your capital raising experience?

    Chad: The level of diligence required by lenders is substantial. At times, it felt too substantial, and we feel like we’ve always kept pretty good records and have solid systems. Though having gone through the process, it has actually fine-tuned how we track our stats and run our business, so it was sort of a blessing in disguise.  We think we are better positioned now to scale the business than we were before we went through our larger growth capital raise.

    Las Vegas Billboards just completed an acquisition in Las Vegas.  What are the details on that deal?

    Chad and Gabe:  We acquired two prime billboard locations from Resort Media Partners. To add four digital displays to our network overnight in key areas of Las Vegas on I-15 and coming out of the McCarren Airport was very exciting for Las Vegas Billboards.  As far as terms of deal, we aren’t at liberty to disclose, though we can say we paid a price commensurate with the premium nature of the assets.

    Do you see more growth on the horizon?

    Chad: Yes, we are currently evaluating additional acquisitions and development opportunities in and around our home market.  We have never been more bullish on Las Vegas.


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