Penn National intends to use the net proceeds of the offering to fund its previously announced redemption of the $200 million in aggregate principal amount of its outstanding approximately 11% series B subordinated notes, which are due March 1, 2008. The balance of the proceeds will be used for general corporate purposes.
The company expects to complete its acquisition of Alton-IL-based Argosy Gaming Co. for approximately $2.2 billion in the second quarter. The purchase, which will bring an additional seven casino and gaming properties to Penn National, includes the assumption of approximately $805 million in debt.
Meanwhile, Penn National is also in the process of completing the disposition of its Hollywood Casino in Shreveport, LA. Peter M. Carlino, CEO, calls 2005 "a transitional year" for the company and said it has "laid the foundation for tremendous future growth." Net revenues for 2004 were in excess of $1.1 billion.
Penn National currently owns and operates 11 casino and horse-racing facilities in nine jurisdictions, including West Virginia, Illinois, Louisiana, Mississippi, Pennsylvania, New Jersey, Colorado, Maine and Ontario. In aggregate, the facilities encompass more than 13,000 slot machines, 260 gaming tables, 1,286 hotel rooms and 417,000 sf of gaming floor space. Plans for additional slots facilities are under way in Pennsylvania and Maine, and a 150-unit hotel is planned for its Charles Town, WV facility.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.