New Issue: Pinnacle Entertainment prices upsized $350 million 10-year notes at par to yield 8¾%

By Paul A. Harris

St. Louis, April 29 - Pinnacle Entertainment, Inc. priced an upsized $350 million issue of 10-year senior subordinated notes (Caa1/B/) at par to yield 8¾% on Thursday, according to an informed source.

The yield printed at the tight end of the 8¾% to 9% price talk.

J.P. Morgan Securities Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Credit Agricole CIB, Deutsche Bank Securities Inc. and UBS Investment Bank were the joint bookrunners for the quick-to-market deal, which was upsized from $250 million.

The Las Vegas gaming company will use the proceeds to refinance its 8¼% notes due 2012.

Issuer:	Pinnacle Entertainment, Inc.
Amount:	$350 million, increased from $250 million
Maturity:	May 15, 2020
Security description:	Senior subordinated notes
Bookrunners:	J.P. Morgan Securities Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., UBS Investment Bank
Co-managers:	Capital One Southcoast, Citadel Securities
Coupon:	8¾%
Price:	Par
Yield:	8¾%
Spread:	502 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 15, 2015, then callable at 104.375, 102.917, 101.458, par on and after May 15, 2018
Equity clawback:	35% at 108.75 until May 15, 2013
Change-of-control put:	101%
Trade date:	April 29
Settlement date:	May 6
Ratings:	Moody's: Caa1
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	8¾% to 9%
Marketing:	Quick-to-market

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