June Special Situations (Members Only, Limited Space) (Ended)
Topic: Pinnacle Entertainment (PNK)
Special situations are corporate actions which could reveal an undervalued security and hence an investment opportunity. Some examples of Special Situations are spinoffs, liquidations, tender offers, restructurings, bankruptcy exits etc. In the Special Situations Research Forum we will discuss an investment situation decided 3 weeks in advance. Every participant in the Forum is expected to research the topic before attending the meeting.
Pinnacle Entertainment (PNK) is a regional casino gaming company and Gaming and Leisure Property Inc (GLPI) is a gaming focused REIT. In April 2016, GLPI and PNK completed a merger/spinoff where GLPI acquired substantially all of legacy Pinnacle's real estate and simultaneously spunoff new Pinnacle Entertainment (PNK) as an operating company. In the transaction, much of Pinnacle's conventional debt was transferred to GLPI, but was replaced by a triple net lease financing obligation on Pinnacle's balance sheet. New Pinnacle Entertainment is trading at a discount (both EV/EBITDA and FCF Yield) to it's closest peer in both markets and capital structure, Penn National Gaming (PENN). Additionally, Pinnacle was able to receive a step-up basis in their assets through the transaction which will provide a significant offset to cash taxes for the next 15 years.
This meeting is a collaborative effort so please be sure to research the topic before the meeting and be prepared to contribute to the discussion.
Attendance will be limited to 15 members - first-come, first-served.
Vishal Mishra; Mishra Capital Partners LLC
Nick Redmond; Oculus Asset Management
Members - Free
Attire: Business Casual
Registration: Limited to 15 members
A dial-in option will be available. Phone number and passcode will be distributed the day prior to discussion.
5:30 - 7:00 pm - Discussion
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