Pinnacle Entertainment Completes Acquisition of Retama Park Racetrack in Texas
January 30 2013 - 8:00AM
Pinnacle Entertainment, Inc. (NYSE:PNK) announced today the closing
of the previously disclosed acquisition of a majority interest in
the owner of the racing license for Retama Park Racetrack, Pinnacle
Retama Partners, LLC ("PRP"). Retama Park Racetrack is a class 1
pari-mutuel horse-racing track directly off of Interstate 35 in
Selma, Texas, located approximately 20 miles northeast of downtown
San Antonio.
At closing, the Company paid cash consideration of $15 million
to acquire a 75.5% equity interest in PRP. PRP will use the
proceeds of the transaction primarily to refinance the existing
indebtedness of Retama Development Corporation ("RDC"). In
addition, the Company entered into a management contract with RDC
to manage the day-to-day operations of Retama Park. In
conjunction with the closing, RDC repaid approximately $3.3 million
of loans owned by the Company that were used to maintain continuity
in the operations of Retama Park Racetrack.
Anthony Sanfilippo, President and Chief Executive Officer of
Pinnacle Entertainment, commented, "We are very excited to welcome
Retama Park to the Pinnacle Entertainment family through our
management contract for the track and to expand our geographic
reach to the great state of Texas. We will immediately begin
work to integrate Retama Park into our portfolio and look forward
to leveraging Pinnacle's operational and marketing expertise to
improve the track's operating performance.
"Long term, we believe Retama Park offers Pinnacle and its
stakeholders tremendous strategic value in terms of expanding our
geographic reach to the vibrant Texas markets of San Antonio and
Austin and further diversifying our operating base. We thank
Retama Development Corporation, the City of Selma, Retama Partners
Limited, and the Texas Racing Commission for their support and
assistance in bringing this transaction to successful
completion."
About Pinnacle Entertainment
Pinnacle Entertainment, Inc. owns and operates seven casinos,
located in Louisiana, Missouri, and Indiana, and a racetrack in
Ohio. In addition, Pinnacle is redeveloping River Downs in
Cincinnati, Ohio into a gaming entertainment facility and holds an
approximate 23% ownership stake in Asian Coast Development (Canada)
Ltd. (ACDL), an international development and real estate company
currently developing Vietnam's first large-scale integrated resort
on the Ho Tram Strip.
On December 20, 2012, the Company agreed to acquire
Ameristar Casinos, Inc. in an all cash transaction valued at $26.50
per Ameristar share or total consideration of $2.8 billion
including assumed debt. Ameristar owns and operates casino
facilities in St. Charles near St. Louis, Missouri; Kansas City,
Missouri; Council Bluffs, Iowa; Black Hawk, Colorado; Vicksburg,
Mississippi; East Chicago, Indiana; and the Jackpot properties in
Jackpot, Nevada.
The Pinnacle Entertainment, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=13121
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 Retama Park Racetrack, the value of
the acquisition of Retama Park Racetrack to Pinnacle's stakeholders
and the acquisition of Ameristar Casinos, Inc., are based on
management's 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 and uncertainties that could cause actual results
to differ materially from those reflected by such statements. Such
factors and uncertainties include, but are not limited to:
(a) there is no assurance that gaming will become legal at
Texas racetracks; (b) the timing to consummate a potential
transaction between Pinnacle and Ameristar; (c) the ability
and timing to obtain required regulatory approvals (including
approval from gaming regulators) for the acquisition of Ameristar
and to satisfy or waive closing conditions; (d) the
possibility that the merger with Ameristar does not close when
expected or at all; or that the companies may be required to modify
aspects of the merger to achieve regulatory approval; and
(e) other risks, including those as may be detailed from time
to time in the Company's filings with the Securities and Exchange
Commission ("SEC"). For more information on the potential factors
that could affect the Company's business and financial results,
review the Company's 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: Investor Relations
Vincent J. Zahn, CFA
Vice President, Finance and Investor Relations
702/541-7777 or investors@pnkmail.com
Media Relations
Kerry Andersen
Director, Public Relations
337/395-7631 or kandersen@pnkmail.com
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