Penn National Gaming, Inc., on Thursday said it plans to offer $400m in aggregate principal amount of eight-year, senior unsecured notes in a private offering, subject to market and other conditions.
The company said it intends to use proceeds of the proposed offering for general corporate purposes, and added the offering is exempt from the registration requirements of the Securities Act of 1933, as amended.
Per a statement from the casino operator’s legal department, the notes will not be registered under the Securities Act, and they may not be offered or sold within the United States or to, or for the account or benefit of, US persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
Accordingly, the notes are being offered and sold only (A) to persons reasonably believed to be qualified institutional buyers in compliance with Rule 144A under the Securities Act and (B) outside the United States to persons other than US persons in compliance with Regulation S under the Securities Act.
Q2 2021 results show improvement over Q2 2019
Separately, Penn National offered a preliminary glimpse of its second quarter 2021 operating results.
The company currently expects its consolidated revenue for the three months ending June 30will range from $1,450m to $1,555m, while its consolidated adjusted EBITDAR will be in the range of $540m to $580m.Adjusted EBITDA is expected to range from $420m to $460m.
Penn National noted the midpoint of the expected revenue and adjusted EBITDAR ranges reflect a quarterly sequential improvement of 18% and 25%, respectively, with adjusted EBITDAR showing margin improvement of some 220 basis points.
When compared to the three months ending June 30, 2019, Penn National expects revenue, adjusted EBITDAR and adjusted EBITDAR margin to increase by 10%, 32% and 625 basis points, respectively.
“We believe this year-over-year and sequential improvement not only highlights continued strong demand trends, but also underscores our ability to drive sustainable margin improvement,” the company said in a statement.
Penn National operates 41 casino properties in 19 states, featuring approximately 50,000 gaming machines, 1,300 table games and 8,800 hotel rooms, operating under brands including Hollywood, Ameristar and L'Auberge wholly-owned interactive. The company’s division, Penn Interactive, operates retail sports betting across the portfolio, as well as online social casino, bingo, and online casino products.
In February 2020, Penn National entered a strategic partnership with Barstool Sports, whereby Barstool will exclusively promote Penn National’s land-based and online casinos and sports betting products, including the Barstool Sportsbook mobile app, to its national audience.
