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LAS VEGAS-Pinnacle Entertainment Inc. will ask lenders to boost its credit facility to $1 billion from $750 million and amend certain covenants and conditions in order to facilitate its acquisition of a casino in New Jersey. The locally based company earlier this month agreed to buy the Sands casino and former Traymore hotel sites in Atlantic City from a company affiliated with billionaire financier Carl Icahn's American Real Estate Holdings LP for about $250 million.
Pinnacle's acquisition would give it 18 acres of contiguous land along the Atlantic City Boardwalk. The company plans to scrape the sites in favor of a new casino-resort development.
The 26-year-old Sands casino is slated to close by mid-November. The sale is expected to close before the end of the year.
The sales agreement prohibits the seller from soliciting other acquisition proposals but allows it to negotiate with those who submit unsolicited proposals. If the seller decides to kill the deal and go with another buyer, it must pay Pinnacle $10 million.
Pinnacle's shares were up $0.46, or 1.64%, at $28.70 during late morning trading Wednesday at the New York Stock Exchange.
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