Business
Penn National Gaming Announces Exercise and Closing of Greenshoe Option in First Ever U.S. Dual Tranche Equity/Convert Offering for a Gaming Operator
WYOMISSING, Pa.--(BUSINESS WIRE)-- Penn National Gaming, Inc. (PENN: Nasdaq) (“Penn National” or the “Company”) today announced that the underwriters of the
About this update from Penn Entertainment, Inc.
[{"type":"text","content":" WYOMISSING, Pa.--(BUSINESS WIRE)--\nPenn National Gaming, Inc. (PENN: Nasdaq) (“Penn National” or the “Company”) today announced that the underwriters of the Company’s recently completed public offering of common stock, par value $0.01 per share (the “Common Stock”) and 2.75% Convertible Senior Notes due 2026 (the “Convertible Notes”) have exercised their options to acquire additional shares of Common Stock and Convertible Notes, together valued at approximately $75 million. Combined with the previously announced public offering, this amount equates to an approximately $675 million dollar capital raise and is the first ever U.S. dual tranche equity/convert offering for a gaming operator.\n\n\nAs a result of the option exercises, together with the 16,666,667 shares of Common Stock and the $300 million aggregate principal amount of Convertible Notes previously issued in the underwritten public offering on May 14, 2020, the Company has now completed the issuance in the offering of a total of (i) 19,166,667 aggregate shares of Common Stock, at a price to the public of $18.00 per share, for gross proceeds of approximately $345 million and (ii) $330,495,000 aggregate principal amount of Convertible Notes.\n\n\nAs previously disclosed, the Company expects to use the net proceeds from the offering for general corporate purposes that will significantly enhance its liquidity while providing the Company with the flexibility to invest in its unique omni-channel growth strategy, powered by its partnership with Barstool Sports.\n\n\nGoldman Sachs & Co. LLC and BofA Securities acted as joint book-running managers and representatives of the underwriters, and J.P. Morgan, Fifth Third Securities and Wells Fargo Securities also served as book-running managers for the offering of Common Stock (the “Common Stock Offering”) and the offering of Convertible Notes (the “Convertible Notes Offering). Barclays, BTIG, Citizens Capital Markets, Macquarie Capital, Morgan Stanley, Stifel, SunTrust Robinson Humphrey and TD Securities acted as co-managers for the Common Stock Offering. Barclays, Citizens Capital Markets, Macquarie Capital, Morgan Stanley, Stifel, SunTrust Robinson Humphrey, TD Securities and US Bancorp acted as co-managers for the Convertible Notes Offering. A shelf registration statement relating to these securities has been filed with the U.S...