Attached files
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8-K - FORM 8-K - Gold Merger Sub, LLC | c20862e8vk.htm |
EX-10.1 - EX-10.1 - Gold Merger Sub, LLC | c20862exv10w1.htm |
Exhibit 99.1
PINNACLE ENTERTAINMENT AMENDS AND EXTENDS REVOLVING CREDIT
FACILITY; INCREASES BORROWING CAPACITY TO $410 MILLION
FACILITY; INCREASES BORROWING CAPACITY TO $410 MILLION
LAS VEGAS, NV, August 3, 2011 Pinnacle Entertainment, Inc. (NYSE: PNK) announced today that it
entered into an amended and restated revolving credit agreement. Among other changes, the size of
the credit facility was increased to $410 million from $375 million and the maturity date was
extended to August 2016 from March 2014. Additionally, the effective interest rate was reduced
throughout the pricing grid, with a current interest rate of 250 basis points over LIBOR compared
to the previous effective interest rate of 375 basis points over LIBOR. As of June 30, 2011, the
Company had approximately $10 million drawn on the revolving credit facility.
Certain financial covenants contained in the credit agreement have also been amended to reflect
Pinnacles recent operating performance improvements, free cash flow and expanded project
development pipeline.
Carlos Ruisanchez, executive vice president and chief financial officer of Pinnacle Entertainment,
commented, The amended revolving credit agreement, including an increase in total borrowing
capacity, lower borrowing costs and updated financial covenants, provides Pinnacle with added
flexibility to continue executing on our pipeline of return-focused expansion projects.
Pinnacle is diversifying its operations through three distinct growth projects which will come
online over the next several years. In Louisiana, construction continues on LAuberge Casino &
Hotel Baton Rouge, which will open in 2012. Additionally, we anticipate that we will soon complete
our investment in Asian Coast Development (Canada) Ltd., the owner and developer of a beachfront
complex of destination integrated resorts and residential properties in Vietnam, and continue to
plan the re-development of River Downs in Cincinnati into a premier racing and gaming entertainment
destination. We value all of our bank relationships and appreciate their help in amending and
extending the agreement.
About Pinnacle Entertainment
Pinnacle Entertainment, Inc. owns and operates seven casinos, located in Louisiana, Missouri,
Indiana and Nevada, and a racetrack in Ohio. The Company is also developing LAuberge Casino &
Hotel Baton Rouge, which is scheduled to open in the summer of 2012. In May 2011, Pinnacle entered
into an agreement to acquire a 26% ownership stake in Asian Coast Development Ltd. (ACDL), an
international development and real estate company currently developing Vietnams first large-scale
integrated resort.
All statements included in this press release, other than historical information or statements of
historical fact, are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements, including statements regarding the opening of the Companys Baton Rouge
project; the closing of the Companys investment in Asian Coast Development (Canada) Ltd. (ACDL);
and the ability of the Company to develop a new gaming and entertainment facility at River Downs,
are based on managements current expectations and are subject to risks, uncertainties and changes
in circumstances that could significantly affect future results. Accordingly, Pinnacle cautions
that the forward-looking statements contained herein are qualified by important factors that could
cause actual results to differ materially from those reflected by such statements. Such factors
include, but are not limited to: (a) significant competition in the gaming industry in all of the
Companys markets could adversely affect the Companys profitability; (b) the Company will have to
meet the conditions for receipt or maintenance of gaming licensing approvals for the Baton Rouge
project, some of which are beyond its control; (c) many factors, including the escalation of
construction costs beyond increments anticipated in its construction budget and unexpected
construction delays, could prevent the Company from completing its Baton Rouge project within
budget and on time and as required by the conditions of the Louisiana Gaming Control Board; (d)
video lottery terminals may not become operational at Ohios racetracks; (e) the terms of the
Companys credit facility and the indentures governing its senior and subordinated indebtedness
impose operating and financial restrictions on the Company; (f) the Company may experience delays
in closing its transaction with ACDL or fail to complete the transaction due to circumstances
beyond its control, including ACDLs inability to complete certain customary conditions provided
for under its credit agreement; there can be no assurance that the transaction will in fact close;
(g) ACDL will have to obtain all necessary approvals for completing the Ho Tram development
project, including gaming and regulatory approvals, some of which are beyond its control; and (h)
other risks, including those as may be detailed from time to time in the Companys filings with the
Securities and Exchange Commission (SEC). For more information on the potential factors that
could affect the Companys financial results and business, review the Companys filings with the
SEC, including, but not limited to, its Annual Report on Form 10-K, its Quarterly Reports on Form
10-Q and its Current Reports on Form 8-K.
CONTACT: |
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Investor Relations
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Media Relations | |
Lewis Fanger
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Kerry Andersen | |
VP, Finance and Investor Relations
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Director, Public Relations | |
702/541-7777 or investors@pnkmail.com
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337/395-7631 or kandersen@pnkmail.com |
Richard Land, Jim Leahy
Jaffoni & Collins Incorporated
212/835-8500 or pnk@jcir.com
Jaffoni & Collins Incorporated
212/835-8500 or pnk@jcir.com
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