LAS VEGAS, April 26, 2012 /PRNewswire/ -- Pinnacle
Entertainment, Inc. (NYSE: PNK) announced today that a wholly-owned
subsidiary of the Company has entered into agreements to execute a
series of transactions that would result in the Company securing a
75.5% equity stake in Retama Partners, Ltd. ("RPL"), the owner of
the racing license for Retama Park Racetrack. Located
approximately 20 miles northeast of downtown San Antonio, Texas, Retama Park is a class 1
pari-mutuel horse-racing track directly off of Interstate 35 in
Selma, Texas.
Under the terms of the agreements, the Company will pay
$22.8 million to acquire the 75.5%
stake in RPL, comprising a purchase of debt securities and other
interests related to Retama Park for $7.8
million and cash consideration of $15.0 million that will be used primarily to
refinance Retama Development Corporation's ("RDC") existing
indebtedness and to provide working capital. The initial
purchase of debt securities and other interests related to Retama
Park are expected to close immediately. The subsequent
transactions are subject to the receipt of all applicable
regulatory approvals and additional agreements with RDC, with
closing expected by the end of 2012. In order to maintain
continuity in the operation of Retama Park, the Company intends to
provide bridge loans of up to $2.6
million to RDC in the near term, which are to be repaid upon
closing of the Company's 75.5% stake purchase with the cash
consideration contributed in that transaction.
Anthony Sanfilippo, President and
Chief Executive Officer of Pinnacle Entertainment, commented, "The
Retama Park transactions provide Pinnacle with the opportunity to
expand our portfolio of properties, diversify our operating base
and provide strategic value for our shareholders. Pinnacle,
along with Retama Partners, Ltd., will improve the financial health
of Retama Development Corporation. Upon closing, we will
immediately begin work to integrate Retama Park into our portfolio
of properties and leverage our operational and marketing expertise
to bolster the track's performance. We look forward to
partnering with the City of Selma
to enhance the value of Retama Park Racetrack and its economic
impact on the State of Texas, the
local community and the horse-racing industry. We believe
Retama Park provides significant strategic value for our
shareholders given the potential approval of gaming entertainment
centers at Texas pari-mutuel
facilities and by expanding the reach of Pinnacle's operations in
the region into two key Texas
markets, San Antonio and
Austin."
Bryan Brown, Chief Executive
Officer of Retama Entertainment Group, commented, "We are very
excited at the prospect of having Pinnacle Entertainment as
operator and majority partner of Retama Park. Pinnacle
Entertainment's investment significantly improves the outlook for
Retama Park and we will undoubtedly benefit from Pinnacle's
resources and long track record as a developer, marketer and
operator of gaming entertainment facilities throughout the
U.S."
About Pinnacle Entertainment
Pinnacle Entertainment, Inc. owns and operates six casinos,
located in Louisiana, Missouri, and Indiana, and a racetrack in Ohio. In addition, Pinnacle is developing
L'Auberge Casino & Hotel Baton Rouge, and holds a 26% 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.
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 the anticipated closing of the
transactions to purchase 75.5% of the equity of Retama Partners,
Ltd., the owner of Retama Park Racetrack, and the
legalization of gaming at Texas
racetracks, 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 that could cause actual results to
differ materially from those reflected by such statements. Such
factors include, but are not limited to: (a) the Company may
experience delays in completing the transactions or fail to
complete the transactions due to circumstances beyond its control,
including failure to obtain approval of the Texas Racing Commission
and other regulatory approvals; (b) there is no assurance
that gaming will become legal at Texas racetracks; and (c) 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.
SOURCE Pinnacle Entertainment, Inc.