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Pinnacle Entertainment repays $313 million of debt through end of Q3
By Lisa Kerner
Charlotte, N.C., Oct. 29 – Pinnacle Entertainment, Inc. continues to delever with cash flow from operations and paid down $121 million of debt in the third quarter, according to president and chief financial officer Carlos Ruisanchez.
“For the first nine months of this year, we have repaid approximately $313 million of debt, or approximately $5 a share,” Ruisanchez said during Pinnacle’s earnings conference call on Thursday.
The company ended the quarter with total debt of $3.64 billion and $123 million of cash and cash equivalents.
Ruisanchez said Gaming & Leisure Properties, Inc. will be assuming $2.7 billion of Pinnacle’s debt at the closing of the companies’ transaction which is expected to occur in the first quarter of 2016.
On July 21, Pinnacle and Gaming & Leisure announced a transaction in which Pinnacle will spin off its operating business and the real property of Belterra Park Gaming & Entertainment Center into a separately traded public company. The real estate assets held by the remaining company will be acquired by Gaming & Leisure.
During the quarter, the company borrowed $225 million on its lower cost revolving credit facility and used the proceeds to repay higher rate term loans to streamline its capital structure and reduce its cash interest expense through the closing of the Gaming & Leisure transaction, according to the earnings news release.
At quarter end, about $715.1 million was drawn on Pinnacle’s $1 billion revolving credit facility and about $12 million of letters of credit were outstanding.
Pinnacle’s third-quarter net revenues were up 1.8% year over year at $578.6 million, while consolidated adjusted EBITDA was up 5.9% to $149.8 million.
Income from continuing operations increased by $5.7 million from the prior-year period to $13.5 million.
Pinnacle Entertainment is a Las Vegas-based owner and operator of casinos.
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