Pinnacle EntertainmentInc.'s board approved the spinoff of its operating company, PNK EntertainmentInc., in connection with Pinnacle's planned mergerwith a Gaming and Leisure PropertiesInc. subsidiary, the company said April 7.
The approved plan calls for the distribution of one share ofPNK Entertainment common stock for every common share of Pinnacle stock held ofrecord as of April 18. The distribution is expected to be made April 28, subjectto conditions that include approval by the Louisiana Gaming Control Board.
The distribution will effectuate the spinoff of Pinnacle's operations,the real property of Belterra Park Gaming and Entertainment Center, and undevelopedland at certain locations into an independent publicly traded company. Immediatelythereafter, Pinnacle plans to merge with a wholly owned subsidiary of Gaming andLeisure Properties. The operating company will then enter into a triple-net masterlease agreement with Gaming and Leisure Properties to lease 14 of the gaming facilitiesused in the REIT's operations.
Following the transactions, Gaming and Leisure Properties willown substantially all of Pinnacle's real property assets, excluding the real propertyof Belterra Park Gaming and Entertainment Center and undeveloped land at certainlocations.