Pinnacle's $800 million bonds for Ameristar purchase expected this week

By Paul A. Harris

Portland, Ore., July 15 - Pinnacle Entertainment, Inc. is expected to bring an $800 million offering of senior notes to market before the end of the week, according to a high-yield bond investor.

The deal is part of the financing for Pinnacle's acquisition of Ameristar Casinos, Inc.

J.P. Morgan Securities LLC will lead the Rule 144A and Regulation S bond deal, the investor added.

A $1.6 billion seven-year term loan, also to help fund the acquisition, is scheduled to launch at a bank meeting on Tuesday, the investor said.

The notes are being issued by PNK Finance Corp., a wholly owned subsidiary of Pinnacle Entertainment.

Along with providing funds to support the Ameristar acquisition, Pinnacle plans to use proceeds from the bonds to redeem its existing 8 5/8% senior notes due 2017, to provide working capital and for general corporate purposes.

Pinnacle Entertainment is a Las Vegas-based owner and operator of casinos. Ameristar is a Las Vegas-based casino gaming company.

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