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8-K - FORM 8-K - Gold Merger Sub, LLC | c21240e8vk.htm |
EXHIBIT 99.1
PINNACLE ENTERTAINMENT CLOSES ON $95 MILLION
INVESTMENT IN ASIAN COAST DEVELOPMENT (CANADA) LTD.
INVESTMENT IN ASIAN COAST DEVELOPMENT (CANADA) LTD.
LAS VEGAS, NV, August 9, 2011 Pinnacle Entertainment, Inc. (NYSE: PNK) announced today that it
has closed on its previously announced $95 million investment in Asian Coast Development (Canada)
Ltd. (ACDL), the owner and developer of the Ho Tram Strip beachfront complex of destination
integrated resorts and residential developments in southern Vietnam. As a result, Pinnacle
acquired a 26% equity interest in ACDL and will receive proportional representation on ACDLs board
of directors; and secured a management agreement through 2058 (with the potential for a 20-year
extension) for the second integrated resort of the multi-phase Ho Tram Strip destination resorts
project.
Anthony Sanfilippo, President and Chief Executive Officer of Pinnacle Entertainment, said, Our
ACDL investment represents a risk-measured approach to utilizing our solid financial condition and
significant free cash flow to diversify and enter one of the fastest growing gaming regions in the
world. We look forward to working with the ACDL management team on the development of a unique
integrated resort complex in a market that has many attractive growth characteristics. We believe
our ability to participate as an owner and manager of the Ho Tram Strip integrated resorts will
allow the Company to enhance long-term shareholder value.
The Ho Tram Strip destination resorts project is located approximately 80 miles southeast of Ho Chi
Minh City, Vietnams largest city which attracts the majority of Vietnams 5 million tourists each
year. The first phase of the Ho Tram Strip, MGM Grand Ho Tram, is currently under construction
with a planned opening in 2013. It will feature 541 luxury guest rooms and suites, a full spectrum
of world-class restaurants and amenities, exquisite VIP accommodations, a conference center, and a
spectacular entertainment area featuring 90 live table games and 500 electronic games. The second
integrated resort of the Ho Tram Strip, for which Pinnacle has secured a management agreement, will
be jointly developed by Pinnacle and ACDL, and owned by ACDL. Pinnacle and ACDL expect that the
second integrated resort, which will be branded as a distinct and premium resort, will be similar
in project scope to the MGM Grand Ho Tram resort that is currently under construction.
About Pinnacle Entertainment
Pinnacle Entertainment, Inc. owns and operates seven casinos, located in Louisiana, Missouri, Indiana and Nevada, and a racetrack in Ohio. The Company is also developing LAuberge Casino & Hotel Baton Rouge, which is scheduled to open in the summer of 2012. In August 2011, Pinnacle acquired a 26% ownership stake in Asian Coast Development (Canada) Ltd. (ACDL), an international development and real estate company currently developing Vietnams first large-scale integrated resort.
Pinnacle Entertainment, Inc. owns and operates seven casinos, located in Louisiana, Missouri, Indiana and Nevada, and a racetrack in Ohio. The Company is also developing LAuberge Casino & Hotel Baton Rouge, which is scheduled to open in the summer of 2012. In August 2011, Pinnacle acquired a 26% ownership stake in Asian Coast Development (Canada) Ltd. (ACDL), an international development and real estate company currently developing Vietnams first large-scale integrated resort.
About Asian Coast Development (Canada) Ltd.
Asian Coast Development (Canada) Ltd. (ACDL) is an international development company specializing in integrated resort destinations. ACDL, through its wholly-owned subsidiary Ho Tram Project Company Ltd, is the developer of the Ho Tram Strip, a group of integrated resorts to be located on more than 400 acres of land and more than two kilometers of pristine beach in Ho Tram, and approved in an Investment Certificate issued by the Government of Vietnam. With a focus on providing a personalized blend of excitement and relaxation, the Ho Tram Strip will feature something for everyone, from lavish entertainment to premium shopping and exceptional recreational facilities.
Asian Coast Development (Canada) Ltd. (ACDL) is an international development company specializing in integrated resort destinations. ACDL, through its wholly-owned subsidiary Ho Tram Project Company Ltd, is the developer of the Ho Tram Strip, a group of integrated resorts to be located on more than 400 acres of land and more than two kilometers of pristine beach in Ho Tram, and approved in an Investment Certificate issued by the Government of Vietnam. With a focus on providing a personalized blend of excitement and relaxation, the Ho Tram Strip will feature something for everyone, from lavish entertainment to premium shopping and exceptional recreational facilities.
In November 2008, ACDL entered into an agreement with MGM Resorts International to provide
pre-opening services and to manage and operate the first of ACDLs five resorts under the MGM Grand
brand. This will be Vietnams first large scale integrated resort and ultimately will include an
1,100-room, five-star MGM Grand hotel, a world-class entertainment facility, restaurants, high-tech
meeting space, an exclusive VIP area, a championship golf course, as well as a variety of
beach-front recreation activities. Phase I of this development is under construction and scheduled
to open in 2013. It will be the initial component of the largest integrated resort complex in
Vietnam. In August 2011, Pinnacle Entertainment Inc. acquired a 26% ownership stake in ACDL in
exchange for a $95 million investment in ACDL. In addition, Pinnacle entered into a management
agreement to manage and operate the second of ACDLs five resorts. For more information about ACDL,
please visit www.asiancoastdevelopment.com.
All statements included in this press release, other than historical information or statements of
historical fact, are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements, including statements regarding the the Ho Tram Strip, the projected
opening date for MGM Grand Ho Tram, expected facilities and amenities for the phases of the Ho Tram
Strip project, potential growth for ACDL and potential growth of the gaming markets in Vietnam and
throughout Asia, the completion of the second integrated resort of the Ho Tram Strip and the
expected returns of the Companys investment in ACDL, are subject to risks, uncertainties and
changes in circumstances that could significantly affect the Companys future financial results and
business. Accordingly, Pinnacle 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 factors include, but are not limited to: (a) the global
financial crisis may have an impact on ACDLs or the Companys business and financial condition in
ways that the Company currently cannot accurately predict; (b) significant competition in the
gaming industry could adversely affect ACDLs or the Companys profitability; (c) many factors,
including the escalation of construction costs beyond increments anticipated in construction
budgets, could prevent ACDL from completing its Ho Tram development project within budget and on
time and as required by the conditions of its certificate in Vietnam; (d) ACDL will have to obtain
all necessary approvals for completing the Ho Tram development project, including gaming and
regulatory approvals, some of which are beyond its control; and (e) other risks, including those as
may be detailed from time to time in the Companys filings with the Securities and Exchange
Commission (SEC). For more information on the potential factors that could affect the Companys
financial results and business, review the Companys filings with the SEC, including, but not
limited to, its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and its Current
Reports on Form 8-K.
CONTACT:
Investor Relations Carlos Ruisanchez Chief Financial Officer 702/541-7777 or investors@pnkmail.com |
Media Relations Kerry Andersen Director, Public Relations 337/395-7631 or kandersen@pnkmail.com |
Richard Land, Jim Leahy
Jaffoni & Collins Incorporated
212/835-8500 or pnk@jcir.com
Jaffoni & Collins Incorporated
212/835-8500 or pnk@jcir.com
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