A PYMNTS Company

US: Pinnacle inflates debt to $4B for casino buyout

By  |  July 16, 2013
US: Pinnacle inflates debt to $4B for casino buyout

Entertainment conglomerate Pinnacle Entertainment announced two separate plans to raise its debt up to $4 billion in order to complete its planned buyout of competitor Ameristar Casinos. The firm made two public announcements to reveal plans for a $1.6 billion term loan as well as a $1 billion revolving credit agreement; the company also plans to sell $800 million in bonds. Reports say the loans are intended to pay off the company’s existing $450 million in debt, due in 2017, and to finance its acquisition of Ameristar in a $2.8 billion deal. The company plans to finalize the merger later this year. In total, gaming analyst for Deutsche Bank Andrew Zarnett told reporters that Pinnacle’s total debt will assume to $4 billion when the transaction is complete.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Full Content: Casino City Times

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.