Penn Gaming solidifying corporate finances with share, note offerings
Penn National Gaming Inc. is issuing a pair of public offerings to bolster the company’s finances during the coronavirus pandemic.
The Wyomissing, Pennsylvania-based regional gaming company that operates the Tropicana on the Strip, the M Resort in Henderson and Cactus Pete’s in Jackpot has a burn rate of $83 million a month and has the resources to continue operations through the end of the year. Most of its 26,000 employees nationwide have been furloughed since April 1. Penn operates 41 casinos in 19 states and is one of the largest regional gaming operators in the country.
In a series of Securities and Exchange Commission filings Monday, Penn said it plans to offer an underwritten public offering of $250 million of shares of common stock and an underwritten public offering of $250 million aggregate principal amount of convertible senior notes due in 2026.
Both the stock offering and the bonds are to be used for general corporate purposes according to the SEC documents.
Neither of the offerings, managed by Goldman Sachs & Co. LLC and BofA Securities, is conditioned on the other.
Penn intends to grant the underwriters a 30-day option to purchase up to $37.5 million of additional shares of its common stock in the stock offering and a 30-day option to purchase up to $37.5 million aggregate principal amount of additional convertible notes in that offering.
The last reported closing price of Penn shares on Friday was $18.43.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
