A PYMNTS Company

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

 |  July 16, 2013

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.

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.