Pinnacle Entertainment to sell up to $300 million of senior notes

By Paul Deckelman

New York, April 11 – Pinnacle Entertainment, Inc., plans to sell up to $300 million of senior unsecured notes, the company said Monday.

There was no immediate word in the market on possible timing of the issue, banks that may be involved or on the structure of the notes to be offered.

Pinnacle said that the notes would be sold via the company’s wholly owned subsidiary, PNK Entertainment, Inc.

The notes will be offered to investors under Rule 144A and Regulation S.

Pinnacle, a Las Vegas-based gaming operator, plans to use the new-deal proceeds, along with proceeds from company's anticipated new senior secured credit facilities, to finance Pinnacle's obligation with a subsidiary of Gaming and Leisure Properties, Inc., the related spin-off of PNK Entertainment to stockholders of Pinnacle and transaction closing costs.

Pinnacle has agreed to sell most of its casino and racetrack properties to Gaming and Leisure Properties, a Wyomissing, Pa.-based gaming industry real estate investment trust, and then lease those properties back from GLPI and operate them.

Separate from that complex sale-and-leaseback transaction, Pinnacle has also agreed to acquire from GLPI the operating rights to the Meadows Racetrack and Casino, a harness racing track and slot-machine racino operation near Pittsburgh, that GLPI is acquiring from Cannery Casino Resorts, a Spring Valley, Nev.-based gaming concern.

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