UPDATE 2-Pinnacle posts loss, postpones Atlantic City plans

* Net loss 20 cents vs profit of 8 cents

* Postpones Atlantic City development

* May seek to amend credit facility

(Adds details on credit facility; company background)

NEW YORK, Nov 6 (Reuters) - Casino operator Pinnacle Entertainment Inc (PNK.N) posted a third-quarter loss on Thursday due partly to Hurricanes Gustav and Ike closing down some of its U.S. operations.

Pinnacle also said it has put plans to build a major development in Atlantic City on indefinite hold due to credit market conditions and increased competition and that it may seek to amend its credit facility.

Pinnacle reported a third-quarter net loss of $11.8 million, or 20 cents per share, compared to a profit of $5 million, or 8 cents per share, in the same period last year.

Third-quarter revenue rose to $262.8 million from $237.6 million a year earlier.

Analysts on average expected a third-quarter loss of 8 cents a share and revenue of $256.98 million, according to Reuters Estimates.

Las Vegas-based Pinnacle operates casinos in Louisiana, Indiana, Missouri, Nevada and Argentina.

COST OF CREDIT MAY RISE

Pinnacle said that as of Sept. 30, it had $125 million in cash and cash equivalents and that $125 million had been drawn under the company's $625 million credit facility.

The company said that although it is in compliance with covenants under its credit facility, it may seek to amend the facility to modify some covenants to take into account the uncertain economic environment.

Pinnacle said that based on preliminary conversations with certain lenders, it believes that it will be able to secure the amendments, although that may raise the cost of the credit facility.

(Editing by Dave Zimmerman)