New Issue: Pinnacle sells upsized $325 million 10-year notes at par to yield 7¾%

By Paul A. Harris

Portland, Ore., March 5 - Pinnacle Entertainment, Inc. priced an upsized $325 million issue of 10-year senior subordinated notes (B3/B/) at par to yield 7¾% on Monday, according to a syndicate source.

The yield printed at the tight end of price talk, which was set in the 7 7/8% area.

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

The Las Vegas-based gaming firm plans to use the proceeds to redeem its existing 7½% senior subordinated notes due 2015, to repay its revolver and for general corporate purposes.

Issuer:	Pinnacle Entertainment, Inc.
Amount:	$325 million, increased from $250 million
Maturity:	April 1, 2022
Securities:	Senior subordinated notes
Bookrunners:	J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays Capital Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., UBS Investment Bank
Co-managers:	Capital One Southcoast, Wells Fargo Securities
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	575 bps
Call protection:	Make whole call at Treasuries plus 50 bps until April 1, 2017, then callable at 103.875
Equity clawback:	35% at 107.75 until April 1, 2015
Trade date:	March 5
Settlement date:	March 19
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	SEC registered
Price talk:	7 5/8% area
Marketing:	Quick to market

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