Pinnacle now plans $2.94 billion credit facility for Ameristar buy

By Sara Rosenberg

New York, June 12 - Pinnacle Entertainment Inc. obtained an amended commitment for a $2,935,000,000 credit facility to help fund its acquisition of Ameristar Casinos Inc., according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The facility consists of an up to $1 billion five-year revolver and a $1,935,000,000 seven-year term loan.

The term loan has a 1% Libor floor.

By comparison, the original debt commitment letter was for a $2.73 billion credit facility comprised of a $400 million five-year revolver at Ameristar, a $200 million five-year term loan A at Ameristar, a $990 million seven-year term loan B at Ameristar, a $410 million five-year revolver at Pinnacle and a $730 million seven-year term loan at Pinnacle.

J.P. Morgan Securities LLC, Goldman Sachs Lending Partners LLC, Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Barclays, Credit Agricole and UBS Securities LLC are the joint arrangers and bookrunners on the deal.

The company still plans on selling $315 million of senior notes for the transaction.

The notes are backed by a commitment for a $315 million bridge loan led by JPMorgan, Goldman Sachs, Bank of America, Deutsche Bank, Wells Fargo, Barclays, Credit Agricole, UBS and Fifth Third.

The bridge loan has a 1.25% Libor floor.

Under the agreement, Ameristar is being purchased for $26.50 per share in cash, for a total enterprise value of $2.8 billion, including debt of $1.9 billion and cash on hand of $116 million as of Sept. 30.

Closing is expected by the end of the third quarter, subject to customary conditions, approval by Ameristar's shareholders and required regulatory approvals.

Pinnacle Entertainment is a Las Vegas-based owner and operator of casinos. Ameristar is a Las Vegas-based casino gaming company.

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