Pinnacle Entertainment tenders for 9¼% notes with new-deal proceeds

New York, Feb. 23 - Pinnacle Entertainment Inc. said that it began a cash tender offer on Feb. 20 for up to $190 million principal amount of its $350 million of outstanding 9¼% senior subordinated notes due 2007.

The tender offer will expire at midnight ET on March 18, subject to possible extension.

Pinnacle, a Las Vegas-based gaming company, said that it would buy the notes back from their holders at a purchase price for validly tendered notes of $1,032.08 per $1,000 principal amount of notes, plus accrued and unpaid interest up to, but not including, the payment date.

The company intends to fund the tender offer through a separately announced debt financing of about $200 million.

If noteholders tender more than $190 million total amount of 9¼% notes under the terms of the offers before the expiration deadline, Pinnacle plans to purchase notes on a pro rata basis in the tender offer, up to the $190 million amount.

Pinnacle's obligation to accept up to $190 million of notes and to complete the tender offer by paying for the notes is subject to a number of conditions, including the completion of the proposed debt financing.

Following completion of the proposed debt financing, Pinnacle Entertainment intends to exercise its right to redeem any notes not tendered and purchased in the tender offer. The notes are redeemable at $1,030.83 per $1,000 principal amount of such notes, plus accrued interest up to the redemption date.

Bear, Stearns & Co. Inc. (call the Global Liability Management Group, at 877 696-2327) and Lehman Brothers Inc. (call the Liability Management Group at 800 438-3242) are the dealer-managers for the tender offer. D.F. King & Co. Inc. is the information agent (call 800 758-5378). The Bank of New York is the depositary agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.