New Issue: Pinnacle upsized $385 million eight-year notes yield 7¾%

By Paul A. Harris

St. Louis, June 5 - Pinnacle Entertainment Inc. priced an upsized $385 million issue of 7½% eight-year senior subordinated notes (B3/B-) at 98.525 to yield 7¾% on Tuesday, according to an informed source.

The issue, which was increased in size from $350 million, priced on top of the price talk.

Lehman Brothers, Bear Stearns & Co., Deutsche Bank Securities and Banc of America Securities LLC were joint bookrunners for the Rule 144A with registration rights offering. Wachovia Securities was the co-manager.

The Las Vegas-based gaming company will use the proceeds to repay its outstanding term loans, for general corporate purposes and to fund its expansion, construction and development projects.

Issuer:	Pinnacle Entertainment, Inc.
Amount:	$385 million (increased from $350 million)
Maturity:	June 15, 2015
Security description:	Senior subordinated notes
Bookrunners:	Lehman Brothers, Bear Stearns & Co., Deutsche Bank Securities, Banc of America Securities LLC
Co-manager:	Wachovia Securities
Coupon:	7½%
Price:	98.525
Yield:	7¾%
Spread:	277 bps
Call features:	Make-whole provision at Treasuries plus 50 bps until June 15, 2011, then callable at 103.750, 101.875, par on and after June 15, 2013
Equity clawback:	Until June 15, 2010 for 35% at 107.50
Trade date:	June 5
Settlement date:	June 8
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A with registration rights
Price talk:	7¾% area

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