Published on 11/18/2004 in the Prospect News High Yield Daily.
New Issue: Pinnacle Entertainment prices $100 million add-on to 8¼% notes at 105, 7.1% yield to worst
By Paul A. Harris
St. Louis, Nov. 18 - Pinnacle Entertainment Inc. priced a $100 million add-on to its 8¼% senior subordinated notes due March 15, 2012 (Caa1/CCC+) at 105.0 on Thursday, resulting in a 7.1% yield to worst, according to a syndicate source.
Price talk was 104.625 to 105.125.
Lehman Brothers and Bear Stearns & Co. were the bookrunners for the off-the-shelf issue. The co-managers were Deutsche Bank Securities, CIBC World Markets, SG Corporate & Investment Banking, Commerzbank, Hibernia, Crowell Weedon, Wells Fargo Securities and Merrill Lynch & Co.
Proceeds will be used to fund the purchase of a portion of the company's outstanding 9¼% senior subordinated notes due 2007.
The original $200 million issue priced at par on Feb. 27.
Pinnacle Entertainment is a Las Vegas-based gaming company.
| Issuer: | Pinnacle Entertainment Inc.
|
| Amount: | $100 million
|
| Security description: | Add-on to senior subordinated notes due March 15, 2012
|
| Bookrunners: | Lehman Brothers, Bear Stearns & Co.
|
| Co-managers: | Deutsche Bank Securities, CIBC World Markets, SG Corporate & Investment Banking, Commerzbank, Hibernia, Crowell Weedon, Wells Fargo Securities, Merrill Lynch & Co.
|
| Maturity: | March 15, 2012
|
| Coupon: | 8¼%
|
| Price: | 105.0
|
| Yield to worst: | 7.1%
|
| Spread: | 355 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: | Nov. 18
|
| Settlement date: | Dec. 3, with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Price talk: | 104.625-105.125
|
| Original issue: | $200 million issue priced at par on Feb. 27
|
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