Pinnacle Entertainment Inc. (PNK)’s $325 million term loan to support a debt tender offer rose in initial trading, according to information provider Markit Group Ltd.
The debt, sold to investors at 99 cents on the dollar, began trading at par, Markit said.
The operator of seven U.S. casinos pays interest at 3 percentage points more than the London interbank offered rate, according to a person with knowledge of the matter. The lending benchmark will have a 1 percent minimum, said the person, who declined to be identified because the terms are private.
Lenders to Las Vegas-based Pinnacle received 101 soft-call protection for one year, the person said, meaning the company would have to pay one cent more than face value to reprice the debt in its first year.
JPMorgan Chase & Co. is arranging the transaction, which was increased by $75 million and matures in March 2019.
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