Pinnacle Amends Credit Agreement And Sells Assets To Cut Cost
After releasing disappointing fourth quarter results, Pinnacle Entertainment (PNK: 11.01 0.00%) said that they would focus on increasing shareholder value in 2010.
“We’re concentrating on operating efficiency and, in particular, effective marketing. We’re evaluating our underperforming and non-strategic assets; reducing corporate overhead costs ; taking a disciplined approach to capital spending; and developing Sugarcane Bay and Baton Rouge in Louisiana.” said interim CEO John Giovenco
As a part of those efforts the gaming company said they would be selling the corporate airplane and work to renegotiate debt.
Pinnacle was able to successfully amend a credit agreement, giving it $375 million of revolving credit and refinance amounts that were outstanding under previous credit agreements.
The new credit facility will mature on March 31, 2014 and has allowed them to draw down $110 million as of Friday.
Other cost cutting measures include the redesign of Sugarcane Bay and Baton Rouge casinos to cut $100 million from construction costs, selling off Atlantic City property, hiring new managers for Boomtown New Orleans and Lumiere Place and consolidating its three Las Vegas offices.
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