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Penn National Gaming, Lender Group Close $1 Billion Facility Expansion

November 05, 2012, 08:04 AM

Penn National Gaming expanded its existing secured $2.15 billion of senior secured credit facilities by $1 billion. Under the original terms of the senior secured credit facilities entered into in July 2011, Penn National had the option to increase the amounts of the facilities at prevailing market rates, subject to obtaining commitments from lenders, pro forma compliance with financial covenants and other customary conditions.

The expanded credit facilities include:

  • An $85 million expansion to the existing $700 million revolving credit facility due July 2016;
  • A $400 million expansion to the existing $700 million five year Term Loan A due July 2016;
  • A $515 million expansion to the existing $750 million Term Loan B due July 2018

The expanded portions of the credit facilities incur no pre-payment penalties and were issued with no origination discount while substantially all of the other terms of the original credit facilities apply to the expanded revolver, Term Loan A and Term Loan B and the credit facilities and continue to allow for debt and equity repurchases.

Penn National is using $610 million of borrowings under the Term Loan A and Term Loan B expansions to fund its acquisition of the Harrah’s St. Louis gaming and lodging facility which it completed November 2 with remaining proceeds from the Term Loan A and Term Loan B expansions used to repay borrowings under the existing revolving credit facility and other general corporate purposes.

Bank of America, Wells Fargo Securities, Commerzbank AG,  Fifth Third Bank, Merrill Lynch, Pierce, Fenner & Smith Incorporated, RBS Securities Inc., and UBS Securities LLC acted as joint lead arrangers and bookrunners.

Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment.

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