Archive for 'Revolving credit'

Pinnacle Entertainment, Inc. (NYSE: PNK) announced today that it entered into an amended and restated revolving credit agreement.  Among other changes, the size of the credit facility was increased to $410 million from $375 million and the maturity date was extended to August 2016 from March 2014.  Additionally, the effective interest rate was reduced throughout the pricing grid, with a current interest rate of 250 basis points over LIBOR compared to the previous effective interest rate of 375 basis points over LIBOR.  As of June 30, 2011, the Company had approximately $10 million drawn on the revolving credit facility.

Certain financial covenants contained in the credit agreement have also been amended to reflect Pinnacle’s recent operating performance improvements, free cash flow and expanded project development pipeline.

Carlos Ruisanchez, executive vice president and chief financial officer of Pinnacle Entertainment, commented, “The amended revolving credit agreement, including an increase in total borrowing capacity, lower borrowing costs and updated financial covenants, provides Pinnacle with added flexibility to continue executing on our pipeline of return-focused expansion projects.

“Pinnacle is diversifying its operations through three distinct growth projects which will come online over the next several years.  In Louisiana, construction continues on L’Auberge Casino & Hotel Baton Rouge, which will open in 2012.  Additionally, we anticipate that we will soon complete our investment in Asian Coast Development (Canada) Ltd., the owner and developer of a beachfront complex of destination integrated resorts and residential properties in Vietnam, and continue to plan the re-development of River Downs in Cincinnati into a premier racing and gaming entertainment destination.  We value all of our bank relationships and appreciate their help in amending and extending the agreement.”

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 L’Auberge Casino & Hotel Baton Rouge, which is scheduled to open in the summer of 2012.  In May 2011, Pinnacle entered into an agreement to acquire a 26% ownership stake in Asian Coast Development Ltd. (ACDL), an international development and real estate company currently developing Vietnam’s first large-scale integrated resort.

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 opening of the Company’s Baton Rouge project; the closing of the Company’s investment in Asian Coast Development (Canada) Ltd. (ACDL); and the ability of the Company to develop a new gaming and entertainment facility at River Downs, 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 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) significant competition in the gaming industry in all of the Company’s markets could adversely affect the Company’s profitability; (b) the Company will have to meet the conditions for receipt or maintenance of gaming licensing approvals for the Baton Rouge project, some of which are beyond its control; (c) many factors, including the escalation of construction costs beyond increments anticipated in its construction budget and unexpected construction delays, could prevent the Company from completing its Baton Rouge project within budget and on time and as required by the conditions of the Louisiana Gaming Control Board; (d) video lottery terminals may not become operational at Ohio’s racetracks; (e) the terms of the Company’s credit facility and the indentures governing its senior and subordinated indebtedness impose operating and financial restrictions on the Company; (f) the Company may experience delays in closing its transaction with ACDL or fail to complete the transaction due to circumstances beyond its control, including ACDL’s inability to complete certain customary conditions provided for under its credit agreement; there can be no assurance that the transaction will in fact close; (g) 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 (h) other risks, including those as may be detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). For more information on the potential factors that could affect the Company’s financial results and business, review the Company’s 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.

Morgans Hotel Group Co. (NASDAQ: MHGC) (“MHG” or the “Company”) announced it has closed a new $100 million senior secured revolving credit facility with additional borrowing capacity up to $110 million. The Company intends to utilize the facility to fund growth.

Michael Gross, Chief Executive Officer of MHG said, “Over the past several months, we have made tremendous strides in positioning ourselves to grow and increase shareholder value.  This credit facility will provide capital to help expand our brands to deliver exceptional experiences for our guests in key markets in the U.S. and around the world.”

Borrowings under the facility are subject to a borrowing base test and upon closing, the Company’s availability is the full $100 million.  The interest rate is LIBOR plus 4.0%, subject to a LIBOR floor of 1.0%.   The facility matures in three years and is secured by Delano in South Beach.  The credit facility contains standard financial covenants, including a minimum fixed charge coverage ratio of 1.05x in the first year and 1.10x thereafter.

Deutsche Bank Securities Inc. and affiliates are acting as the Lead Arranger and Administrative Agent for the facility and Aareal Capital Corporation, Citibank, N.A. and MidFirst Bank are also lenders.

About Morgans Hotel Group

Morgans Hotel Group Co. (NASDAQ: MHGC) is widely credited as the creator of the first “boutique” hotel and a continuing leader of the hotel industry’s boutique sector.  Morgans Hotel Group operates Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles, South Beach and New York, Clift in San Francisco, Ames in Boston, Sanderson and St Martins Lane in London, and a hotel in Playa del Carmen, Mexico.  Morgans also owns, or has ownership interests in, several of these hotels.  Morgans Hotel Group has other property transactions in various stages of completion including a Delano in Cabo San Lucas, Mexico, a Delano in Turkey, a Mondrian in Doha, Qatar and a hotel in New York to be branded with one of MHG’s existing brands. For more information please visit

Forward-Looking and Cautionary Statements

This press release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, among other things, the operating performance of our investments and financing needs and prediction of certain future other events. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “expect,” “anticipate,” “estimate” “believe,” “project,” or other similar words or expressions. These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results or other future events to differ materially from those expressed in any forward-looking statement. Important risks and factors that could cause our actual results to differ materially from those expressed in any forward-looking statements include, but are not limited to economic, business, competitive market and regulatory conditions such as: a sustained downturn in economic and market conditions, particularly levels of spending in the business, travel and leisure industries; continued tightness in the global credit markets; general volatility of the capital markets and our ability to access the capital markets; our ability to refinance our current outstanding debt and to repay outstanding debt as such debt matures; our ability to protect the value of our name, image and brands and our intellectual property; risks related to natural disasters, such as earthquakes, volcanoes and hurricanes; hostilities, including future terrorist attacks, or fear of hostilities that affect travel; and other risk factors discussed in Morgans’ Annual Report on Form 10-K for the fiscal year ended December 31, 2010, and other documents filed by Morgans with the Securities and Exchange Commission from time to time. All forward-looking statements in this press release are made as of the date hereof, based upon information known to management as of the date hereof, and Morgans assumes no obligations to update or revise any of its forward-looking statements even if experience or future changes show that indicated results or events will not be realized.

Enhanced Oil Resources Inc. (TSX-V: EOR) Acquires $25 Million Line of Credit

Enhanced Oil Resources Inc. (TSX-V: EOR) Acquires $25 Million Line of Credit-Image via Wikipedia

Enhanced Oil Resources Inc. (TSX-V: EOR) today announced that two of its wholly-owned U.S. subsidiaries have executed a reducing revolving Credit Facility with Regions Bank, Houston, Texas providing for up to US $25,000,000 in development financing for its oil and gas properties located in New Mexico. The new Credit Facility provides an initial borrowing base of US $3.6 million and maximum borrowings of up to $25 million. The new facility, which will have a three year term, requires minimum interest rates of 5% on borrowings under the facility.  Borrowings will bear interest at 2.0% over the Bank’s prime rate for Base Rate Loans or 3.5% over the London Interbank Offered Rate (LIBOR) for Eurodollar Loans outstanding. Interest payments will be due monthly for Base Rate Loans and, in connection with Eurodollar Loans, on the ending date of the Interest Period selected for such Loans, from one to six months.  Payments under the Loan Agreement will be required to the extent that outstanding principal and interest exceed the Borrowing Base.

Increases in the Borrowing Base under the Loan Agreement will be revised based on the Bank’s engineering valuation of the Company’s subsidiaries oil and gas reserves, including additions from reactivations, drilling, enhanced oil recovery projects and provides for other oil field acquisitions.  The Credit Facility is collateralized by certain Mortgaged Properties (principally the Company’s Crossroads field and the Milnesand Unit field) located in Lea and Roosevelt counties, New Mexico.  The Borrowing Base will decrease automatically at the rate of US $250,000 per month and will be re-determined semi-annually; however, the Company may request two additional re-determinations of the Borrowing Base annually.

Also in connection with the Credit Facility, the Company has entered into Hedging Agreements with the Bank’s Capital Markets Group and executed transactions for the forward sale of a portion of its share of projected production.  As of December 20, 2010, the Company’s two subsidiaries have hedged approximately 55,000 net barrels of crude oil for delivery in 2011 at an average price of approximately $90.64 per barrel, subject to customary adjustments for quality and transportation.

Proceeds of the Borrowings may be used to provide working capital, to fund oil field acquisitions and developmental drilling expenses and to fund other working capital requirements.  The Loan Agreement contains certain mandatory covenants, including minimum current ratio and cash flow requirements, limitations on indebtedness, limitations on dispositions, hedging limitations, and other standard business operating covenants.

The Company’s President and CEO Mr. Barry Lasker states “The signing of this Credit Facility is a significant step forward in the development of the multiple projects we have identified in our oil fields in New Mexico. A reserves based credit facility is a necessary tool for additional financing for projects we are pursuing, including our infill drilling programs we expect to commence in 2011, as well as the Cortez Pipeline connection to deliver CO2 to our oil fields in 2012.  We are proud of our relationship with Regions Bank and the multiple facets of their affiliates in capital markets services which they can bring to focus on our projects. Together with our current positive cash flow stream this Credit Facility will accelerate further production reactivations at Crossroads and infill drilling to increase our San Andreas oil production at Milnesand field and will assist management in systematically increasing production on a larger scale than we had been able to achieve in the past.  We thank the shareholders for their support and we look forward to announcing additional achievements in the future.”

Forward-Looking Statement

Certain statements contained herein are forward-looking statements, including statements relating to Enhanced Oil Resources’ operations; business prospects, expansion plans and strategies.  Forward-looking information typically contains statements with words such as “intends,” “anticipate,” “estimate,” “expect,” “potential,” “could,” “plan” or similar words suggesting future outcomes.  Readers are cautioned not to place undue reliance on forward-looking information because it is possible that expectations, predictions, forecasts, projections and other forms of forward-looking information will not be achieved by Enhanced Oil Resources.  By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties.  A change in any one of these factors could cause actual events or results to differ materially from those projected in the forward-looking information.  Although Enhanced Oil Resources believes that the expectations reflected in such forward-looking statements are reasonable, Enhanced Oil Resources can give no assurance that such expectations will prove to be correct.  Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Enhanced Oil Resources and described in the forward-looking statements or information. The forward-looking statements are based on a number of assumptions which may prove to be incorrect.  Readers should be aware that the list of factors, risks and uncertainties set forth above are not exhaustive. Readers should refer to Enhanced Oil Resources’ current filings, which are available at, for a detailed discussion of these factors, risks and uncertainties.  The forward-looking statements or information contained in this news release are made as of the date hereof and Enhanced Oil Resources undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws or regulatory policies.



Barry D Lasker, CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

TreeHouse Foods, Inc. (NYSE: THS) Acquires S.T. Specialty Foods for $180 Million

TreeHouse Foods, Inc. (NYSE: THS) Acquires S.T. Specialty Foods for $180 Million

TreeHouse Foods, Inc. (NYSE: THS) announced today that it has completed the previously announced acquisition of S.T. Specialty Foods for $180 million, plus up to an additional $15 million if the company achieves certain earnings targets for the 12 month period ending December 31, 2010.  S.T. Specialty Foods, Inc., headquartered in Brooklyn Park, Minnesota, produces private label macaroni and cheese, skillet dinners and other value-added side dishes and salads.

Prior to the closing, on October 27, 2010, TreeHouse amended and restated its revolving credit facility.  The Amended and Restated Credit Agreement extends the maturity of the Company’s revolving credit facility from August 31, 2011 until October 27, 2015 and increases the amount available under the revolving credit facility from $600 million to $750 million.  The covenants under the Amended and Restated Credit Agreement are substantially consistent with those contained in the Company’s prior credit agreement.  The interest rate under the Amended and Restated Credit Agreement is based on the Company’s consolidated leverage ratio, and will be determined by either LIBOR plus a margin ranging from 1.50% to 2.50%, or a base rate (as defined in the Amended and Restated Credit Agreement) plus a margin ranging from 0.50% to 1.50%.

The proceeds of the Amended and Restated Credit Agreement were used to refinance the Company’s existing credit facility, fund the acquisition purchase price, and pay related transaction costs.  Upon closing of the S.T. Specialty Foods transaction, approximately $200 million of the Amended and Restated Credit Agreement remained undrawn and available.

About TreeHouse Foods

TreeHouse is a food manufacturer servicing primarily the retail grocery and foodservice channels.  Its products include non-dairy powdered coffee creamer; canned soup, salad dressings and sauces; sugar free drink mixes and sticks; instant oatmeal and hot cereals; macaroni and cheese, skillet dinners and other value-added side dishes and salads; salsa and Mexican sauces; jams and pie fillings under the E.D. Smith brand name; pickles and related products; infant feeding products; and other food products including aseptic sauces, refrigerated salad dressings, and liquid non-dairy creamer.  TreeHouse believes it is the largest manufacturer of pickles and non-dairy powdered creamer in the United States and the largest manufacturer of private label salad dressings, drink mixes and instant hot cereals in the United States and Canada based on sales volume.

SOURCE TreeHouse Foods, Inc.