Moody's on March 31 placed Pinnacle Entertainment Inc.'s B1 corporate family ratingand B1-PD probability of default rating on review for upgrade.
The rating agency also assigned a Ba2 rating to Pinnacle's proposed$350 million term loan B, $400 million revolver and $185 million term loan A, alongwith a B2 rating to the company's proposed $300 million senior unsecured notes.
Additionally, the Ba2 rating on the company's existing bank loanfacilities, B2 senior unsecured note rating and B3 senior subordinated debt ratingwere affirmed.
According to Moody's, the review for upgrade considers that sincePinnacle's announcementabout its sale-leaseback transaction with Gamingand Leisure Properties Inc., "a number of positive developmentshave occurred" that will likely enhance Pinnacle's long-term operating andfinancial flexibility.
Assuming the transaction closes as planned, and no material unexpectednegative developments arise between now and closing, Moody's said it expects toup Pinnacle's corporate family rating and probability of default rating one notchto Ba3 and Ba3-PD, respectively, and assign a stable ratings outlook.
At closing, the rating agency also plans to withdraw the ratingson Pinnacle's existing revolver, term loan, senior unsecured notes and senior subordinatednotes, given that the debt issues will be refinanced and no longer exist.