Pinnacle closes issuance of us$ 325 million

The term loan was issued at a price of 99.0% with an interest rate of 300 basis points over LIBOR and a 1.0% LIBOR floor.  The term loan will mature in March 2019, provided that such date will be accelerated to December 15, 2014 if any portion of the company's 7.5% senior subordinated notes due 2015 are outstanding on December 15, 2014, and May 1, 2017 if any portion of the firm's 8.625% senior notes due 2017 are outstanding on May 1, 2017.

The company will use all of the net proceeds of the notes offering and a portion of the net proceeds from the term loan to redeem all us$ 385 million in aggregate principal amount of its existing 7.5% senior subordinated notes due 2015 and to repay all us$ 70 million in outstanding revolving credit borrowings under its credit facility.  The company will use the remaining net proceeds of the term loan to continue development of the projects in its growth pipeline and for general corporate purposes.

Carlos Ruisanchez, executive vice president and chief financial officer of Pinnacle Entertainment commented, "The issuance of the new notes, incurrence of the term loan, redemption of the 7.5% notes and repayment of revolver balances extends our maturity schedule, lowers the overall effective interest rate on our debt capital structure, and bolsters our liquidity position. 

"We intend to use the excess proceeds of these financing transactions, along with the cash flow provided by our existing operations, for construction of L'Auberge Baton Rouge, the River City casino expansion, a potential casino development at River Downs and for general corporate purposes.  Upon completion, these long-term operating assets will now be financed with a long-term capital structure. Additionally, the company will retain significant financial flexibility to review, analyze and potentially participate in additional return focused growth opportunities through the use of our us$ 410 million revolving credit facility."