Penn National Gaming Enters Into New Credit Facilities and Completes Refinancing Transactions
January 19 2017 - 3:25PM
Business Wire
Penn National Gaming, Inc. (PENN:Nasdaq) (“Penn”), announced
today that it has entered into new senior secured credit facilities
and completed its other previously announced refinancing
transactions for the purpose of refinancing its existing credit
facilities and its existing senior unsecured notes, and raising
additional capital for general corporate purposes.
Penn’s new senior secured credit facilities are comprised of a
$700 million revolving credit facility with a maturity of five
years, a $300 million term loan A facility with a maturity of five
years and a $500 million term loan B facility with a maturity of
seven years (collectively, the “New Credit Facilities”). The
interest rates applicable to loans under the New Credit Facilities
are, at Penn’s option, equal to either a LIBOR rate or a base rate
plus an applicable margin. The applicable margin for the revolving
credit facility and the term loan A is initially 2.25% for LIBOR
loans and 1.25% for base rate loans until Penn provides financial
reports for the first full fiscal quarter following closing and,
thereafter, will range from 1.25% to 3.00% per annum for LIBOR
loans and 0.25% to 2.00% per annum for base rate loans, in each
case depending on Penn’s total net leverage ratio. The applicable
margin for the term loan B is 2.50% for LIBOR loans and 1.50% for
base rate loans. The term loan B is also subject to an interest
rate floor of 0.75% for LIBOR loans and 1.75% for base rate loans.
Unused commitments under the revolving credit facility are subject
to a commitment fee of 0.35% per annum, until Penn provides
financial reports for the first full fiscal quarter following
closing and, thereafter, 0.20% to 0.50% per annum, depending on
Penn’s total net leverage ratio.
B.J. Fair, Chief Financial Officer of Penn commented, “The new
senior secured credit facilities acknowledge the Company’s
financial strength, liquidity and strong free cash flow generation
and reflect the Company’s continued focus on actively and
conservatively managing our capital structure to provide the
financial flexibility to support our near- and long-term growth
initiatives. Additionally, the refinancing of our credit facilities
and the completion of our other previously announced refinancing
transactions position Penn with one of the most attractive weighted
average cost of capital in the gaming industry, which allows us to
pursue a diverse range of opportunities to enhance shareholder
value.”
The proceeds of the initial funding under the New Credit
Facilities, together with any remaining proceeds from the other
refinancing transactions, were used to refinance Penn’s existing
credit facilities and fund related transaction fees and expenses,
with remaining proceeds to be available for general corporate
purposes.
About Penn National Gaming
Penn is a leading, diversified, multi-jurisdictional owner and
manager of gaming and racing facilities and video gaming terminal
(“VGT”) operations. Penn has also recently expanded into social
online gaming offerings via its Penn Interactive Ventures, LLC
division and Penn’s recent acquisition of Rocket Speed, Inc.
(formerly known as Rocket Games, Inc.). Penn currently owns,
manages, or has ownership interests in twenty-seven facilities in
the following seventeen jurisdictions: California, Florida,
Illinois, Indiana, Kansas, Maine, Massachusetts, Mississippi,
Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania,
Texas, West Virginia, and Ontario, Canada.
Forward-Looking Statements
This press release includes “forward looking statements,”
including those statements set forth in the quotations above. These
statements can be identified by the use of forward looking
terminology such as “expects,” “believes,” “estimates,” “projects,”
“intends,” “plans,” “seeks,” “may,” “will,” “should” or
“anticipates” or the negative or other variation of these or
similar words, or by discussions of future events, strategies or
risks and uncertainties. Actual results may vary materially from
expectations. Although Penn believes that its expectations are
based on reasonable assumptions, within the bounds of its knowledge
of its business, there can be no assurance that actual results will
not differ materially from Penn’s expectations, and accordingly,
Penn’s forward looking statements are qualified in their entirety
by reference to the factors described in Penn’s Annual Report on
Form 10-K for the year ended December 31, 2015, subsequent
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as
filed with the Securities and Exchange Commission (the “SEC”).
Meaningful factors that could cause actual results to differ
materially from the forward looking statements include, without
limitation, risks relating to the Company’s continued financial
strength, liquidity, free cash flow generation, capital structure
and cost of capital, financial flexibility, shareholder value,
near- and long-term initiatives and other opportunities and other
factors discussed in Penn’s filings with the SEC. All subsequent
written and oral forward looking statements attributable to Penn or
persons acting on Penn’s behalf are expressly qualified in their
entirety by the cautionary statements included in this press
release. Penn undertakes no obligation to publicly update or revise
any forward looking statements contained or incorporated by
reference herein, whether as a result of new information, future
events or otherwise, except as required by law. In light of these
risks, uncertainties and assumptions, the forward looking events
discussed in this press release may not occur.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170119006114/en/
Penn National Gaming, Inc.William J. Fair, 610-373-2400Chief
Financial OfficerorJCIRJoseph N. Jaffoni, Richard
Land212-835-8500penn@jcir.com
PENN Entertainment (NASDAQ:PENN)
Historical Stock Chart
From Apr 2024 to May 2024
PENN Entertainment (NASDAQ:PENN)
Historical Stock Chart
From May 2023 to May 2024