Supplier News
US – Louisiana approves Pinnacle’s sell and lease back deal
By Phil - 19 April 2016
The Louisiana Gaming Control Board has unanimously granted the approvals necessary for Pinnacle Entertainment to complete its previously announced transaction with Gaming & Leisure Properties.
The deal will see Pinnacle spin off its operating business and the real property of Belterra Park Gaming & Entertainment Center into a separately traded public company (OpCo) sell them to GLPI and then lease them back under a triple-net Master Lease agreement costing an initial $377m.
Anthony Sanfilippo, Chief Executive Officer of Pinnacle Entertainment, said: “We thank the Louisiana Gaming Control Board for its thorough and diligent review of our regulatory applications related to our transaction with Gaming and Leisure Properties. We are excited to have obtained their unanimous approval today and to have achieved one of the last needed milestones to complete our transaction with Gaming and Leisure Properties.
“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. 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.
“We have one remaining gaming regulatory approval to obtain in Colorado before completing the transaction, which we expect to be addressed on April 21. We anticipate completing our transaction with Gaming and Leisure Properties on April 28,” concluded Mr. Sanfilippo.
