Pinnacle ups term B to $325 million, cuts spread to Libor plus 300 bps

By Sara Rosenberg

New York, March 8 - Pinnacle Entertainment Inc. increased the size of its seven-year term loan B (Ba1/BB+/BB) to $325 million from $250 million and reduced pricing to Libor plus 300 basis points from talk of Libor plus 325 bps to 350 bps, according to a market source.

Also, the Libor floor was trimmed to 1% from 1.25%, the source said.

The original issue discount was left unchanged at 99 and there is still 101 soft call protection for one year.

Commitments were due at 3 p.m. ET on Thursday, accelerated from an original deadline of Friday.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Barclays Capital Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., UBS Investment Bank, Capital One and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds, along with $325 million of senior subordinated notes, will be used to redeem the company's $385 million of 7½% senior subordinated notes due 2015, to repay all revolver borrowings and for general corporate purposes.

The term loan will have a springing maturity to Dec. 15, 2014 if any of the company's 7½% senior subordinated notes are outstanding on that date and to May 1, 2017 if any of its 8 5/8% senior notes due 2017 are outstanding on that date.

Pinnacle is a Las Vegas-based owner and operator of casinos.

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