Lehman Brothers and Bear Stearns held a bank meeting last Thursday for an amendment to Pinnacle Entertainment's credit that will reprice the "B" loan at a lower rate. The Las Vegas-based casino company is also increasing the size of the loan and extending the delay draw feature. There is approximately $200 million left on the term loan right now and the company is increasing this to $250 million, a banker said. The $75 million revolver is also being upsized to $100 million. The term loan is currently priced at LIBOR plus 3 1/2%. The terms of the reprice have not been decided yet, the banker added.
Pinnacle came to market in December with a $300 million facility, choosing Lehman and Bear Stearns to lead the deal over previous lead Bank of America (LMW, 2/9). At that time the debt comprised a $225 million term loan and $75 million revolver. Steve Capp, Pinnacle's cfo, did not return calls. Lehman and Bear Stearns bankers either declined comment or did not return calls.