Published on 4/12/2016 in the Prospect News High Yield Daily.
New Issue: Pinnacle Entertainment prices upsized $375 million 5 5/8% eight-year notes at par
By Paul A. Harris
Portland, Ore., April 12 – Pinnacle Entertainment, Inc. priced an upsized $375 million issue of eight-year senior notes (B2/BB-) at par to yield 5 5/8% on Tuesday, according to market sources.
The issue size was increased from $300 million.
The yield printed at the tight end of yield talk in the 5¾% area. Initial guidance was in the low 6% context.
J.P. Morgan Securities LLC, Goldman Sachs & Co., BofA Merrill Lynch, Fifth Third Bank, U.S. Bancorp Investments Inc., Credit Agricole CIB, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC were the bookrunners.
The Las Vegas-based gaming company plans to use the proceeds to refinance Pinnacle’s obligation with a subsidiary of Gaming & Leisure Properties, Inc., the related spinoff of PNK Entertainment to stockholders of Pinnacle.
The issuing entity will be PNK Entertainment, Inc., a wholly owned subsidiary of Pinnacle Entertainment.
| Issuer: | PNK Entertainment, Inc., a wholly owned subsidiary of Pinnacle Entertainment, Inc.
|
| Amount: | $375 million, increased from $300 million
|
| Maturity: | May 1, 2024
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co., BofA Merrill Lynch, Fifth Third Bank, U.S. Bancorp Investments Inc., Credit Agricole CIB, Deutsche Bank Securities Inc., Wells Fargo Securities LLC
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| Spread: | 399 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until May 1, 2019, then callable at 104.219
|
| Trade date: | April 12
|
| Settlement date: | April 28
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 5¾% area
|
| Marketing: | Quick to market
|
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