The casino operator, struggling with its debt load following a management-lead buyout last year, said it is terminating the exchange as certain terms of the offer will not be satisfied. Last week, the firm had extended the deadline for the exchange for the second time in one week.
The failure of the debt exchange leaves the company in a precarious position, as analysts anticipate it may trip terms in its bank debt by the end of the year and will need to negotiate with bank lenders to avoid a default.
"The last set of negotiations, for which Station walked away, would have added another 425 basis points to the rate paid on the term loan and revolver for just a year of covenant relief," Barbara Cappaert, analyst at KDP Investment Advisors, said in a report last month.
"If the situation is not resolved and the pending bank violations are not fixed, Station is at risk of a Chapter 11 filing," she said.