On November 20, 2012, Boyd Gaming Corporation ("Boyd") completed its previously announced acquisition of Peninsula Gaming, LLC ("PGL") pursuant to an Agreement and Plan of Merger (the "Merger Agreement") entered into on May 16, 2012, by and among Boyd, Boyd Acquisition II, LLC ("HoldCo"), Boyd Acquisition Sub, LLC, an indirect wholly-owned subsidiary of Boyd ("Merger Sub"), Peninsula Gaming Partners, LLC ("PGP") and PGL. Pursuant to the terms of the Merger Agreement, Merger Sub merged with and into PGL (the "Merger"), with PGL surviving the Merger. PGL is now an indirect, wholly-owned subsidiary of Boyd. In addition, in connection with the Merger, Boyd Acquisition Finance Corp. ("Boyd Finance Corp.") merged (the "Finance Company Merger") with and into Peninsula Gaming Corp, with Peninsula Gaming Corp surviving the Finance Company Merger.

Pursuant to the terms of the Merger Agreement, upon consummation of the Merger, PGL assumed all assets and liabilities of Merger Sub and became the borrower under the Credit Agreement (as defined below) and, together with Peninsula Gaming Corp. upon consummation of the Finance Company Merger, the issuer of the PGL Senior Notes (as defined below).

Credit Agreement

On November 16, 2012, Merger Sub entered into a Credit Agreement (the "Credit Agreement"), dated as of November 14, 2012, with the lenders party thereto and Bank of America, N.A., as administrative agent, collateral agent, swing line lender, and L/C issuer. Upon consummation of the Merger, PGL expressly assumed all assets and liabilities of Merger Sub and became the borrower under the Credit Agreement.

Amount and Maturity

The Credit Agreement provides for a $875.0 million senior secured credit facility (the "Credit Facility"), which consists of (a) a term loan facility of $825.0 million (the "Term Loan") and (b) a revolving credit facility of $50.0 million (the "Revolver"). The Term Loan was fully funded concurrently with the closing of the Merger. A portion of the Revolving Loan was funded concurrently with the closing of the Merger. The maturity date for obligations under the Credit Facility is November 17, 2017.

Guarantees and Collateral

PGL's obligations under the Credit Facility, subject to certain exceptions, are guaranteed by PGL's subsidiaries and are secured by the capital stock and equity interests of PGL's subsidiaries. In addition, subject to certain exceptions, PGL and each of the guarantors granted the collateral agent first priority liens and security interests on substantially all of real and personal property (other than gaming licenses and subject to certain other exceptions) of PGL and its subsidiaries as additional security for the performance of the obligations under the Credit Facility. The obligations under the Revolver rank senior in right of payment to the obligations under the Term Loan.

The interest rate on the outstanding balance from time to time of the Term Loan is based upon, at PGL's option, either: (i) the Eurodollar rate plus 4.50%, or
(ii) the base rate plus 3.50%. The interest rate on the outstanding balance from time to time of Revolving Loans is based upon, at PGL's option, either: (i) the Eurodollar rate plus 4.00%, or (ii) the base rate plus 3.00%. In addition, PGL will incur a commitment fee on the unused portion of the Credit Facility at a per annum rate of 0.50%.

Optional and Mandatory Prepayments

The Credit Facility requires that PGL prepay the loans with proceeds of any significant asset sale or event of loss. In addition, the Credit Facility requires fixed quarterly amortization and requires that PGL use a portion of its annual excess cash flow to prepay the loans. The Revolver can be terminated without premium or penalty, upon payment of the outstanding amounts owed with respect thereto. The Term Loan can be prepaid without premium or penalty, except that a 1.0% premium is payable in connection with prepayments of the Term Loan prior to November 20, 2013 through the issuance of indebtedness having a lower interest rate than the interest rate payable in respect of the Term Loan.

Certain Covenants

The Credit Facility contains customary affirmative and negative covenants (and are subject to customary exceptions) for financings of its type. PGL is required to maintain (i) a maximum consolidated leverage ratio over each twelve month . . .

On November 20, 2012, in connection with the closing of the Merger, PGL terminated its $50.0 million senior secured credit facility under an Amended and Restated Loan Agreement, dated as of October 29, 2009, by and among PGL, Diamond Jo, LLC, The Old Evangeline Downs, L.L.C., Belle of Orleans, L.L.C. and Diamond Jo Worth, LLC, as borrowers, the lenders that are signatories thereto and Wells Fargo Capital Finance, Inc., as agent for the lenders.

In addition, on November 20, 2012, in connection with the closing of the Merger, PGL issued a notice of redemption with respect to its 8.375% Senior Secured Notes due 2015 and 10.750% Senior Unsecured Notes due 2017, in each case specifying a redemption date of December 20, 2012. PGL satisfied and discharged such Notes through the deposit with U.S. Bank National Association, as trustee, of the amount of funds required to redeem the two series of notes on the redemption date.

As discussed above in Item 1.01 of this Current Report, on November 20, 2012, Boyd announced that it completed the Merger.

Pursuant to the terms of the Merger Agreement, Boyd acquired PGL for approximately $1.55 billion, net of certain expenses and adjustments, in the form of cash, debt financing and the HoldCo Note. Of the $1.55 billion, $200 million was funded by cash from Boyd, of which,

The foregoing description of the Merger Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Merger Agreement, a copy of which is filed hereto as Exhibit 2.1, and is incorporated into this Current Report by reference.

The representations and warranties contained in the Merger Agreement were made only for the purposes of the agreement as of specific dates and may have been qualified by certain disclosures between the parties and a contractual standard of materiality different from those generally applicable to stockholders, among other limitations. The representations and warranties were made for the purposes of allocating contractual risk between the parties to the Merger Agreement and should not be relied upon as a disclosure of factual information relating to Boyd or PGL.

The disclosure set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

On November 20, 2012, Boyd issued a press release to announce the closing of the Merger. The press release is attached hereto as Exhibit 99.1 and is incorporated herein in its entirety by reference.

(a) Financial Statements of Business Acquired.

The financial statements required by Item 9.01(a) are not being filed herewith. The financial information required by Item 9.01(a) of this Current Report on Form 8-K, with respect to the Merger described in Item 2.01 herein, will be filed by amendment no later than 71 days after the date on which this Current Report on Form 8-K was required to be filed pursuant to Item 2.01.

The pro forma financial statements required by Item 9.01(b) are not being filed herewith. The pro forma financial information required by Item 9.01(b) of this Current Report on Form 8-K, with respect to the Merger described in Item 2.01 herein, will be filed by amendment no later than 71 days after the date on which this Current Report on Form 8-K was required to be filed pursuant to Item 2.01.

(d) Exhibits.

Exhibit
Number                                    Description

 2.1         Agreement and Plan of Merger, dated as of May 16, 2012, entered into
             by and among, Boyd Gaming Corporation, Boyd Acquisition II, LLC, Boyd
             Acquisition Sub, LLC, Peninsula Gaming Partners, LLC and Peninsula
             Gaming, LLC (incorporated by reference from Exhibit 2.1 to Boyd's
             Current Report on Form 8-K dated May 17, 2012). †

10.1         Credit Agreement, dated as of November 14, 2012, among Boyd
             Acquisition Sub, LLC, as the Initial Borrower, Bank of America, N.A.,
             as Administration Agent, Collateral Agent, Swing Line Lender and L/C
             Issuer, the other lenders party thereto, and Merrill Lynch, Pierce,
             Fenner & Smith Incorporated, J.P. Morgan Securities LLC, Deutsche Bank
             Securities Inc., and UBS Securities LLC as Joint Lead Arrangers and
             Joint Book Managers.

10.2         Seller Merger Consideration Note, dated November 20, 2012 made by Boyd
             Acquisition II, LLC in favor of Peninsula Gaming Partners, LLC.

99.1         Press Release.

† Exhibits and schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. Boyd hereby undertakes to furnish supplementally copies of any of the omitted schedules upon request by the SEC.