Pinnacle Improves Borrowing Terms, Increases Flexibility

Pinnacle Entertainment has a new amended and restated $400 million credit facility that will give the company greater flexibility and improved prices.

  • 17 Sep 2004
Email a colleague
Request a PDF

Pinnacle Entertainment has a new amended and restated $400 million credit facility that will give the company greater flexibility and improved prices. The casino operator will use the liquidity available in the new facility to build new projects in Louisiana and Missouri, to refinance some bonds and for general corporate purposes, Capp added. "The loan market is very aggressive right now. There is a lot of money looking for work and I think the company has accomplished a good deal," said Steve Capp, Pinancle's cfo.

The new financing includes a $75 million revolver, a $170 million funded term loan and a $50 million delayed draw term loan. The previous facility consisted of a $75 million revolver, a $147 million funded term loan and a $50 million delayed drawn term loan. The facility reduces the company's borrowing cost by 50 basis points from LIBOR plus $3 1/2 to LIBOR plus 3%. Pinnacle was only aiming to borrow $350 million, but because of significant oversubscription, the company decided to increase its borrowings by $50 million, Capp noted. "Our core properties are performing in a very solid way, so we have gained some additional confidence from the loan market, which was willing to put a bigger deal in place for us at a cheaper interest rate," he said.

Lehman Brothers and Bear Stearns are leading the deal. According to Capp, the decision to put in place the new deal was part of an ongoing conversation between Pinnacle and its bank group. Lehman and Bear Stearns also led Pinnacle's previous financing.

  • 17 Sep 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 12,508 23 18.18
2 Bank of America Merrill Lynch (BAML) 8,059 25 11.72
3 Lloyds Bank 5,761 18 8.38
4 Citi 5,606 15 8.15
5 JP Morgan 5,007 7 7.28

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 95,847.77 272 11.13%
2 Bank of America Merrill Lynch 80,029.51 227 9.30%
3 JPMorgan 72,172.60 208 8.38%
4 Wells Fargo Securities 69,859.54 198 8.12%
5 Credit Suisse 58,056.32 149 6.74%