Published on 7/30/2013 in the Prospect News High Yield Daily.
New Issue: Pinnacle Entertainment sells upsized $850 million 6 3/8% eight-year notes at par
By Paul A. Harris
Portland, Ore., July 30 - Pinnacle Entertainment, Inc. priced an upsized $850 million issue of eight-year senior notes (B2/B+/) at par to yield 6 3/8% on Tuesday, according to a market source.
The issue was upsized from $800 million.
The yield printed in the middle of the 6¼% to 6½% yield talk.
J.P. Morgan Securities LLC, Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Credit Agricole CIB, Barclays and UBS Investment Bank were the joint bookrunners.
Proceeds will be used to help finance the cash consideration for the acquisition of Ameristar Casinos, Inc., to redeem Pinnacle's 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.
| Issuer: | PNK Finance Corp., to be merged with and into Pinnacle Entertainment, Inc.
|
| Amount: | $850 million, increased from $800 million
|
| Maturity: | Aug. 1, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Credit Agricole CIB, Barclays, UBS Investment Bank
|
| Senior co-manager: | Fifth Third Securities, Inc.
|
| Co-managers: | RBS Securities Inc., SMBC Nikko
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 411 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Aug. 1, 2016, then callable at 104.781, 103.188, 101.594, par on and after Aug. 1, 2019
|
| Equity clawback: | 35% at 106.375 until Aug. 1, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | July 30
|
| Settlement date: | Aug. 5
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6¼% to 6½%
|
| Marketing: | Quick to market
|
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