Pinnacle Entertainment Closes Sale of Remaining 60 Acres of Land in Inglewood, California for $36 Million
Pinnacle Entertainment, Inc. today announced that it completed the previously disclosed pending sale of the remaining 60 acres of land in Inglewood, California. The Company received approximately $33 million on May 28, 2004, which constitutes the balance of the $36 million total purchase price. Previously the Company had received $3 million of non-refundable deposits. After expenses, the Company anticipates net cash proceeds of approximately $35 million and a gain of approximately $28 million when further reduced for the net book value of the land and other costs. Consistent with the previously announced 37-acre land sale in February, the Company does not anticipate paying any current income tax on this land sale based on its federal net operating loss carry-forwards.
The Company intends to use the net cash proceeds to fund its development plans, including the Lake Charles project, the downtown St. Louis project and the St. Louis County project (in the case of each St. Louis project, pending approval by the Missouri Gaming Commission).
Pursuant to the Company's bank agreement, its approximate $68 million delayed draw term loan commitment will be reduced by 50% of the net cash proceeds from the land sale. Hence, the delayed draw term loan will be reduced to approximately $50 million. The Company's $75 million revolver remains undrawn and available.
About Pinnacle Entertainment
Pinnacle Entertainment owns and operates casinos in Nevada, Mississippi, Louisiana, Indiana and Argentina, and receives lease income from two card club casinos, both in the Los Angeles metropolitan area. The Company is also building a major casino resort in Lake Charles, Louisiana and has been selected for two casino and related development projects in St. Louis, Missouri, pending approval of the Louisiana Gaming Control Board, and the Missouri Gaming Commission, respectively.
All statements included in this press release, other than historical information or statements of historical fact, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and are subject to risks, uncertainties and changes in circumstances that could significantly affect future results. Accordingly, Pinnacle Entertainment cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. Such statements and factors include, but are not limited to those as may be detailed from time to time in Pinnacle Entertainment's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.