The increase in credit consists of $175 million in additional capacity under its revolving credit facility and an additional $75 million of funded term loans, both on virtually identical terms as those of the existing $750-million credit agreement.
Pinnacle announced in mid-September that it would seek the additional credit. The announcement came shortly after it 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, plus an additional $20 million for certain tax-related benefits and additional real estate.
The sale is expected to close before the end of the year. The company plans to scrape the sites in favor of a new casino-resort development. Design and construction of such casino resort is expected to require four to five years. In the meantime, Pinnacle has several other balls in the air.
Earlier this month, voters approved plans for another Lake Charles project by Pinnacle called Sugarcane Bay. In October, Pinnacle reached a settlement agreement with President Casinos Inc. regarding its acquisition of the bankrupt President Casino in St. Louis. If approved by the bankruptcy court and the Missouri Gaming Commission, Pinnacle will pay $41.5 million for the property after all is said and done.
In Downtown St. Louis, the sixth level of Pinnacle's new casino resort there is under construction. The project is scheduled to open in the second half of 2007 with 2,000 slot machines, 40 table games, a spa, several restaurants and 12,000 sf of meeting and convention space. And in south St. Louis County, site work is under way for River City, Pinnacle's $375-million casino project.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
