Bank of America and Bear Stearns last Thursday launched syndication of a $225 million credit for Pinnacle Entertainment. The proceeds will finance the gaming company's construction and development of a hotel and casino resort in Lake Charles, La. The debt package includes a five-year, $125 million term loan and a four-year, $100 million revolver. Bankers familiar with the deal would not indicate pricing, but one banker noted that it would be in line with Pinnacle's BB rating. He added that total leverage would start at 5.8 times, with senior leverage below two times for the life of the facility. B of A and Bear Stearns officials declined to comment.
B of A leads an existing $110 million revolver for Pinnacle set to expire in December. That deal carried pricing in the LIBOR plus 2% range and as of last Dec. 31 had not been tapped. Pinnacle presently owns and operates seven casinos, four with hotels, in Indiana, Louisiana, Mississippi, Nevada and Argentina. Subsidiaries include Casino Magic and Boomtown. Pinnacle's cfo, Stephen Capp, was out of the office last week and could not be reached. Chris Plant, v.p. and controller, did not return calls.