Business
Penn National Gaming Announces Additional Mitigation Efforts in Response to COVID-19 Pandemic
Reaches Agreement with Gaming & Leisure Properties for $337.5 Million in Rent Credits Raises $1.2 Million for Emergency Relief Fund and Extends Health
About this update from Penn Entertainment, Inc.
[{"type":"text","content":"\nReaches Agreement with Gaming & Leisure Properties for $337.5 Million in Rent Credits \n\n\nRaises $1.2 Million for Emergency Relief Fund and Extends Health Benefits to Assist Team Members Affected by Planned Companywide Furloughs\n\n\nWithdraws Full-Year 2020 Guidance \n\n WYOMISSING, Pa.--(BUSINESS WIRE)--\nPenn National Gaming, Inc. (PENN: Nasdaq) (“Penn National” or the “Company”) today announced additional measures to help mitigate the financial impact of the ongoing COVID-19 pandemic.\n\n\n“As the global COVID-19 health crisis continues to evolve, we are navigating through this unprecedented time for our Company, our industry and our nation,” said Jay Snowden, President and Chief Executive Officer of Penn National. “With all of our 41 properties in 19 states temporarily shuttered, like many others in the gaming and hospitality sector, we are making difficult decisions to help preserve our liquidity and ensure a brighter future for our Company’s team members, customers, shareholders and other key stakeholders.\n\n\n“Today we announced an agreement with our principal landlord, Gaming & Leisure Properties (GLPI: Nasdaq) (“GLPI”), involving the sale of the Tropicana Las Vegas real estate assets (we will continue to operate the facility) and a new ground lease for our planned Category 4 casino in Morgantown, Pennsylvania, in exchange for $337.5 million in rent credits,” said Mr. Snowden. “In addition, the deal includes an option for us to acquire the operations of GLPI’s Hollywood Casino in Perryville, Maryland at a future date. We greatly appreciate the cooperation, creativity and partnership shown by GLPI during this challenging time. While this transaction will help to relieve liquidity pressure in terms of rent obligations, we are committed to taking further steps to reduce our ongoing operating expenses in order to ensure we have a healthy business to return to when we are able to re-open our doors,” said Mr. Snowden.\n\n\nAs previously announced, Penn National will continue to pay its team members their full wages and benefits through March 31. However, several states have announced extensions of their temporary closure orders and other states may soon follow suit. Given the uncertainty about the duration of the pandemic, and with no meaningful revenue for the foreseeable future, Penn National will be implementing unpai...