WYOMISSING, Pa.--(BUSINESS WIRE)--Penn National Gaming, Inc. (PENN: Nasdaq) announced that it has closed on its underwritten public offering of $300 million of common shares and $300 million aggregate principal amount of 2.75% Convertible Senior Notes due 2026.
Based on strong demand, both the size of the Common Stock Offering and the aggregate principal amount of the Convertible Notes Offering were increased from their previously announced $250 million levels respectively. In addition, Penn National has granted 30-day options to the underwriters to acquire up to $90 million in total of additional common stock and/or Convertibles Notes at the respective offering prices less underwriting discounts.
“This successful transaction positions our Company for long-term success by significantly solidifying our balance sheet,” said Jay Snowden, President and Chief Executive Officer. Pro forma for the transaction, Penn National will have $1.3 billion (or $1.4 billion if the underwriters exercise their options to acquire additional securities in full) in cash and cash equivalents as of March 31, 2020, which will provide the Company the flexibility to continue to invest in its unique omni-channel growth strategy, powered by its partnership with Barstool Sports.
About Penn National Gaming
With the nation's largest and most diversified regional gaming footprint, including 41 properties across 19 states, Penn National continues to evolve into a highly innovative omni-channel provider of retail and online gaming, live racing and sports betting entertainment. The Company's properties feature approximately 50,000 gaming machines, 1,300 table games and 8,800 hotel rooms and operate under various well-known brands, including Hollywood, Ameristar and L'Auberge. Our wholly-owned interactive division, Penn Interactive, operates retail sports betting across the Company's portfolio, as well online social casino, bingo and iCasino products. In February 2020, Penn National entered into a strategic partnership with Barstool Sports, pursuant to which Barstool agreed to exclusively promote the Company's land-based and online casinos and sports betting products, including the Barstool Sportsbook mobile app, to its national audience of over 66 million. The Company's omni-channel approach is bolstered by the mychoice loyalty program, which rewards and recognizes its over 20 million members for their loyalty to both retail and online gaming and sports betting products with the most dynamic set of offers, experiences and service levels in the industry.
