Penn National Gaming, Inc. announced that it expanded its existing secured $2.15 billion of senior secured credit facilities by $1 billion. Bank of America, Wells Fargo Securities, Commerzbank AG, New York and Grand Cayman Branches, Fifth Third Bank, Merrill Lynch, Pierce, Fenner & Smith, RBS Securities and UBS Securities acted as joint lead arrangers and bookrunners.

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; and,

  • 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.

    William J. Clifford, CFO of Penn National Gaming commented, “We are appreciative of our lead banks and participating banks for the confidence expressed in Penn National’s financial strength, liquidity and growing cash flows. An expansion was contemplated when we entered into the new credit facilities last year and we remain focused on actively and conservatively managing our capital structure to provide the financial flexibility to support our near- and long-term growth initiatives…”

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

    Previously on

    BofA Merrill Lynch, Others Ink $2.15 Billion for Penn National, Wednesday, July 20, 2011