Pinnacle Entertainment, Inc PNK announced after Monday's market close that it has received the necessary regulatory approval to proceed with a previously announced transaction with Gaming and Leisure Properties Inc GLPI.
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As part of the transaction, Pinnacle will spin off its operating business and the real property of Belterra Park Gaming & Entertainment Center into a publicly traded company and the real estate assets held by the remaining company will be acquired by Gaming Leisure Properties.
Pinnacle shareholders will receive a fixed exchange ratio of 0.85 of a share of Gaming Leisure stock per each share of Pinnacle they own. In additional, Pinnacle shareholders will receive one share of the newly created public company for each share of Pinnacle they already own.
On Monday, Pinnacle said the Louisiana Gaming Control Board voted to unanimously grant the necessary approval to proceed with the transaction. The company added it now requires just the approval from gaming authorities in Colorado before the transaction can be finalized.
Pinnacle expects to receive such approval from Colorado authorities on April 21 and expects to complete the transaction on April 28.
"Last week, we successfully priced new financings related to our transaction with Gaming and Leisure Properties, which combined with an already committed $185 million term loan A and $400 million revolving credit facility, provides the capital structure needed to spin-off our operations to our existing shareholders," Anthony Sanfilippo, Chief Executive Officer of Pinnacle Entertainment, stated, We believe the healthy liquidity and leverage profile that our Company will have following the completion of our transaction with Gaming and Leisure Properties provides a solid foundation for future growth.
Shares of Pinnacle gained 0.70 percent in Monday's after-hours session, while Gaming and Leisure gained 0.21 percent.
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