Penn National Gaming amended its credit facility to support its upcoming acquisition of the outstanding equity interest in Pinnacle Entertainment.
According to a related 8-K filing, Bank of America served as administrative agent for the transaction.
If the acquisition is not consummated and the acquisition agreement is terminated in accordance with its terms, the first amendment provides for a more limited set of amendments to take effect.
The first amendments, among other things, extend the maturity date of the revolving credit facility and the term loan A credit facility, increase Penn’s secured debt capacity, permit up to $100 million of borrowings under the revolving credit facility on limited conditionality in connection with the acquisition, add flexibility to certain covenants and modify the maximum consolidated total net leverage ratio covenant and maximum consolidated senior secured net leverage ratio covenant.
In connection with the first amendment, Penn entered into the second amended and restated commitment letter between Bank of America, Merrill Lynch, Goldman Sachs, Fifth Third Bank, US Bank, Wells Fargo Securities, Wells Fargo Bank, Citizens Bank, SunTrust Robinson Humphrey, SunTrust Bank, TD Securities, TD Bank and M&T. Under the terms of the second amended and restated commitment letter, the commitment parties have provided commitments for a $430 million senior secured term loan A facility, a $1.2 billion senior secured term loan B facility and a $380 million unsecured bridge facility in connection with the acquisition.
