LAS VEGAS, June 17, 2013 (GLOBE NEWSWIRE) -- Pinnacle Entertainment, Inc. (NYSE:PNK) announced today that it has reached an agreement in principle with the Bureau of Competition Staff of the Federal Trade Commission ("Commission") that, subject to negotiation of a consent order, Commission approval and gaming regulatory approvals, would permit the consummation of its proposed acquisition of Ameristar Casinos, Inc.
On May 28, 2013, the Commission issued an administrative complaint regarding the proposed acquisition. Since that time, the parties have made significant progress toward resolving the matter without the need for administrative litigation. Consequently, on June 13, 2013, Federal Trade Commission Chief Administrative Law Judge D. Michael Chappell granted Pinnacle's and Ameristar's unopposed motion to extend the deadline to respond to the administrative complaint by 30 days. Pinnacle intends to sell Ameristar's casino hotel development project in Lake Charles, Louisiana, and Pinnacle's Lumiere Place Casino, HoteLumiere and the Four Seasons Hotel in St. Louis, Missouri, subject to gaming regulatory approvals. In the trailing twelve month period ending March 31, 2013, the net revenues and Adjusted EBITDA for Pinnacle's St. Louis segment were $389.4 million and $98 million, respectively, and Lumiere Place Casino and Hotels contributed 49% and 35%, respectively, to those segment results. Ameristar has previously disclosed that through March 31, 2013, it invested total capital of $144.5 million in the Lake Charles project, including purchase price, capital expenditures and escrow deposits. Ameristar has also previously disclosed that in the 2013 second quarter, it expects capital spending of $84.0 million related to Lake Charles design and construction costs.
Pinnacle also intends to negotiate a consent order with the Bureau of Competition Staff, which would permit Pinnacle to complete its acquisition of Ameristar subject to any divestitures and other terms and conditions specified in the consent order. A consent order must be approved by a vote of the Commission, which may accept or reject all terms and conditions.