Penn National Gaming, Inc. (PENN: Nasdaq) ("Penn”) today announced that
it has called for redemption of all the $105,536,000 outstanding
aggregate principal amount of its 6 7/8% senior subordinated notes due
2011 (CUSIP No. 707569AH2). The redemption price is $1,000 per $1,000
principal amount of notes, plus accrued and unpaid interest to the
scheduled redemption date, which is December 1, 2009. Penn intends to
fund the redemption of the notes from available cash, borrowings under
its revolving credit facility or a combination thereof.
About Penn National Gaming
Penn National Gaming owns and operates gaming and racing facilities with
a focus on slot machine entertainment. The Company presently operates
nineteen facilities in fifteen jurisdictions, including Colorado,
Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi,
Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and
Ontario. In aggregate, Penn National’s operated facilities feature over
26,300 gaming machines, approximately 400 table games, over 2,000 hotel
rooms and over 959,000 square feet of gaming floor space.
Forward-looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements about the redemption of the notes and the payment
of the redemption price. Actual results may vary materially from
expectations. Although Penn National Gaming, Inc. and its subsidiaries
(collectively, the "Company”) believe that our expectations are based on
reasonable assumptions within the bounds of our knowledge of our
business and operations, there can be no assurance that actual results
will not differ materially from our expectations. Meaningful factors
that could cause actual results to differ from expectations include, but
are not limited to, risks related to the following: our ability to
maintain regulatory approvals for our existing businesses and to receive
regulatory approvals for our new businesses; the passage of state,
federal or local legislation or referenda that would expand, restrict,
further tax, prevent or negatively impact operations (such as a smoking
ban at any of our facilities) in or adjacent to the jurisdictions in
which we do business; the activities of our competitors and the
emergence of new competitors; increases in the effective rate of
taxation at any of our properties or at the corporate level; delays or
changes to, or cancellations of, planned capital projects at our gaming
and pari-mutuel facilities or an inability to achieve the expected
returns from such projects; construction factors, including delays and
increased cost of labor and materials; the ability to recover proceeds
on significant insurance claims (such as claims related to the fire at
Empress Casino Hotel); our ability to identify attractive acquisition
and development opportunities and to agree to terms with partners for
such transactions, the costs and risks involved in the pursuit of such
opportunities and our ability to complete the acquisition or development
of, and achieve the expected returns from, such opportunities; the
availability and cost of financing; the maintenance of agreements with
our horsemen, pari-mutuel clerks and other organized labor groups; the
outcome of legal proceedings instituted against the Company in
connection with the termination of the previously announced acquisition
of the Company by certain affiliates of Fortress Investment Group LLC
and Centerbridge Partners, L.P.; the effects of local and national
economic, credit, capital market, housing, and energy conditions on the
economy in general and on the gaming and lodging industries in
particular; changes in accounting standards; our dependence on key
personnel; the impact of terrorism and other international hostilities;
the impact of weather on our operations; and other factors as discussed
in the Company’s Annual Report on Form 10-K for the year ended December
31, 2008, subsequent Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K as filed with the SEC. The Company does not intend to update
publicly any forward-looking statements except as required by law.
