Pinnacle Entertainment Closes Credit Facility

Pinnacle Entertainment, Inc. (NYSE: PNK) announced today that it has entered into a new $750 million credit facility, replacing the Company's existing $380 million facility. The new credit facility, which was arranged by Lehman Brothers and Bear, Stearns & Co. Inc., consists of a $450 million five-year revolving credit facility, a $200 million six-year senior secured term loan, and a $100 million six-year delayed draw term loan. The new facility also includes a greenshoe provision, offering the potential to increase the credit facility's size to $1 billion. Additionally, the new credit facility provides the Company with a reduced interest rate spread of approximately 100 basis points as compared to the existing credit facility. Proceeds will be used for general corporate purposes, including completion of two projects Pinnacle has under construction in the St. Louis metropolitan area.

"We are pleased to enter into this new credit agreement. It has terms that are considerably more flexible than before, reflecting the significant progress made by the Company in recent years and favorable conditions in the current loan market," said Daniel R. Lee, Chairman and CEO of Pinnacle Entertainment. "We are also excited to welcome a number of new banking relationships into the Pinnacle family, and look forward to further developing those relationships in the future."