New Issue: Pinnacle Entertainment $200 million eight-year notes yield 8 3/8%

By Paul A. Harris

St. Louis, Feb. 27 - Pinnacle Entertainment Inc. sold $200 million of eight-year senior subordinated notes (Caa1/CCC+) Friday at 99.282 with an 8¼% coupon to yield 8 3/8%, a syndicate source said.

Price talk was 8¼% to 8 3/8%.

Lehman Brothers and Bear Stearns & Co. were joint bookrunners on the Rule 144A/Regulation S issue. The co-managers were Deutsche Bank Securities, SG Cowen, Hibernia and UBS Investment Bank.

Proceeds will be used to repurchase or redeem part of the company's 9¼% senior subordinated notes due 2007.

The issuer is a Las Vegas-based gaming company.

Issuer:	Pinnacle Entertainment Inc.
Amount:	$200 million
Maturity:	March 15, 2012
Security description:	Senior subordinated notes
Bookrunners:	Lehman Brothers, Bear Stearns & Co.
Co-managers:	Deutsche Bank Securities, SG Cowen, Hibernia, UBS Investment Bank
Coupon:	8¼%
Price:	99.282
Yield:	8 3/8%
Spread:	467 basis points
Call features:	Callable after March 15, 2008 at 104.125, 102.063, par on March 15, 2010 and thereafter
Equity clawback:	Until March 15, 2007 for 35% at 108.25
Pricing date:	Feb. 27
Settlement date:	March 15
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC+
	Fitch: B-
Price talk:	8¼%-8 3/8%

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