New Issue: Pinnacle Entertainment $130 million 10-year notes yield 9%

By Paul A. Harris

St. Louis, Sept. 19 - Pinnacle Entertainment, Inc. priced $135 million of 8¾% senior subordinated notes due Oct. 1, 2013 (Caa1/CCC+) at 98.369 Friday to yield 9%, according to a syndicate source.

Price talk was for a yield of 8 7/8%-9 1/8%.

Bear Stearns & Co. was bookrunner for the off-the-shelf deal. Banc of America Securities, Lehman Brothers and SG Cowen were joint lead managers. CIBC World Markets and UBS Investment Bank were co-managers.

The Las Vegas-based gaming and entertainment company will use proceeds to fund its tender for its $125 million of 9½% senior subordinated notes due 2007.

Issuer:	Pinnacle Entertainment, Inc.
Amount:	$135 million
Maturity:	Oct. 1, 2013
Security description:	Senior subordinated notes
Bookrunner:	Bear Stearns
Joint lead managers:	Banc of America Securities, Lehman Brothers, SG Cowen
Co-managers:	CIBC World Markets, UBS Investment Bank
Coupon:	8¾%
Price:	98.369
Yield:	9%
Spread:	485 basis points
Call features:	Callable after Oct. 1, 2008 at 104.375, then 102.917, 101.458, declining to par on Oct. 1, 2011 and thereafter
Equity clawback:	Until Oct. 1, 2006 for 35% at 108.75
Settlement date:	Sept. 25
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
Price talk:	8 7/8%-9 1/8%

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