Penn National Gaming Closes Public Offering of Common Stock and 2.75% Convertible Senior Notes Due 2026
Upsized Offering Significantly Enhances Company’s Liquidity Position and Provides Flexibility to Invest in Long Term Growth Initiatives
WYOMISSING, Pa.: Penn National Gaming, Inc. has announced that it has closed on its underwritten public offering of $300 million of common shares (the “Common Stock Offering”) and $300 million aggregate principal amount of 2.75% Convertible Senior Notes due 2026 (the "Convertible Notes" and such offering, the "Convertible Notes Offering").
Based on strong demand, both the size of the Common Stock Offering and the aggregate principal amount of the Convertible Notes Offering were increased from their previously announced $250 million levels respectively. In addition, Penn National has granted 30-day options to the underwriters to acquire up to $90 million in total of additional common stock and/or Convertibles Notes at the respective offering prices less underwriting discounts.
“This successful transaction positions our Company for long-term success by significantly solidifying our balance sheet,” said Jay Snowden, President and Chief Executive Officer. Pro forma for the transaction, Penn National will have $1.3 billion (or $1.4 billion if the underwriters exercise their options to acquire additional securities in full) in cash and cash equivalents as of March 31, 2020, which will provide the Company the flexibility to continue to invest in its unique omni-channel growth strategy, powered by its partnership with Barstool Sports.
To download a copy of Penn National’s “Omni-Channel Growth Strategy Update” presentation, please visit:www.pngaming.com/growth-strategy-update
Mr. Snowden continued, “Looking ahead, we have begun to receive the green light to reopen our casinos on a limited basis in certain markets. Thus far, it looks like Louisiana will be first, with casinos reopening on a limited basis on May 18. We anticipate that a meaningful number of our properties will follow suit by the end of May/early June, which will further enhance our liquidity position.” With operations spread across 19 states – and no more than 15% of its revenues derived from any single state – Penn National is well-positioned as states begin to open casinos on a sequential basis.
“We had such a tremendous start to the year, with results running ahead of expectations in January and February. We can’t wait to resume that positive momentum in the weeks and months ahead as we turn our focus to successfully reopening our properties,” concluded Mr. Snowden.
