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HOUSTON and LAS VEGAS, July 25, 2013 (GLOBE NEWSWIRE) -- Golden Nugget and Pinnacle Entertainment, Inc. (NYSE:PNK) announced today that the companies have entered into a definitive agreement whereby Golden Nugget will acquire all of the equity interests of the entity that owns the Ameristar Casino Lake Charles development project.
Under the terms of the agreement, Golden Nugget will pay total consideration equal to all cash expenditures on the development up until the date of closing, and the assumption of all outstanding payables related to the project at that time, less a $37 million credit. Golden Nugget will complete the development project following the closing of the transaction. Ameristar has disclosed that through June 30, 2013, it had invested total capital of $213.9 million in the Lake Charles project, including the original purchase price, capital expenditures and escrow deposits.
Tilman J. Fertitta, Owner and Chief Executive Officer of Golden Nugget and affiliate, Landry's, Inc., commented, "We are tremendously excited about this opportunity. Due to our strong presence with all of our brands in the Texas and Louisiana markets, we are confident that we can grow gaming revenues in Lake Charles, and together with L'Auberge Lake Charles Casino Resort, offer consumers one of the best gaming experiences in the country."
Anthony Sanfilippo, Chief Executive Officer of Pinnacle Entertainment, commented, "We are pleased to enter into this agreement with Golden Nugget. With Golden Nugget being headquartered in South Texas, having a long history of high quality operations in the broader region and bringing strong brands and operational expertise in the gaming and hospitality industries, we believe they are well positioned to enhance the appeal of Lake Charles and our respective resort properties as a preeminent gaming entertainment destination."
The transaction is subject to the approval of the Louisiana Gaming Control Board and U.S. Federal Trade Commission, and is conditioned upon Pinnacle completing its planned acquisition of Ameristar Casinos, Inc., as well as customary closing conditions. The resort is being developed on a 242-acre site, which is adjacent to Pinnacle's existing L'Auberge Lake Charles Casino Resort. The development project being acquired by Golden Nugget in this transaction represents the right to obtain the last gaming license currently available under Louisiana law. The transaction is expected to close by the end of 2013.