Pinnacle Entertainment Closes Purchase of Ameristar
Pinnacle Entertainment, Inc. (NYSE: PNK) ("Pinnacle" or the "Company") announced today that it has completed the acquisition of Ameristar Casinos, Inc. (Nasdaq: ASCA) ("Ameristar"). As previously announced, Ameristar stockholders are receiving $26.50 per share in cash for each share of Ameristar common stock. The transaction is valued at approximately $2.8 billion, including assumed debt. The acquisition is expected to be immediately accretive to Pinnacle Entertainment's free cash flow and earnings per share. Pinnacle Entertainment also announced today the closing of a $2.6 billion amended and restated senior secured credit facility. The proceeds from the amended and restated senior secured credit facility, along with the proceeds from a recent 6.375% senior unsecured note offering, were utilized by the Company to finance the aggregate cash consideration for the acquisition of Ameristar, refinance its and Ameristar's existing credit facilities, pay related transaction fees and expenses, redeem its existing 8.625% senior notes due 2017 and will provide working capital and funds for general corporate purposes.
As a result of the transaction, the Company added eight properties and will operate a total of 16 properties in nine states, excluding the Ameristar Casino Lake Charles development project and Pinnacle's Lumiere Place Casino and Hotels which are potentially being divested as described below.
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