Penn National Gaming Enters into Definitive Agreement to Acquire Operations of Greektown Casino-Hotel
Acquisition of Established Property in Downtown Detroit Expected to
be Immediately Accretive to Operating Results with a
Simultaneous with the closing of the transaction, Penn National will
enter into a triple net lease agreement with
Timothy J. Wilmott, Penn National’s Chief Executive Officer, stated,
“The acquisition of the
“Detroit is undergoing an exciting renaissance as a result of billions
of dollars of new investments in the city’s residential, commercial,
entertainment and cultural center, all of which are driving new
residents, businesses, tourists and employment to the downtown area.
Greektown is the only casino in the heart of downtown, and we look
forward to welcoming patrons from the many nearby attractions, such as
The transaction will be financed with a combination of cash on hand and
debt. On a pro forma basis, and reflecting the
Mr. Wilmott added, “Greektown Casino-Hotel further strategically diversifies our revenue, operating and customer base, and presents well-defined paths to the realization of significant synergies. With an OpCo purchase multiple of 6.3x anticipated annual run-rate adjusted EBITDA and including synergies to be realized within eighteen months, we believe this transaction again highlights our commitment to enhancing shareholder value. With the expected increase to our free cash flow, we remain well positioned to reduce leverage, evaluate additional accretive strategic growth investments and opportunistically return capital to shareholders.”
Opened in 2000,
Upon closing the Greektown transaction, Penn National’s portfolio of regional gaming facilities will increase to 41 properties in 19 jurisdictions.
The transaction, which is expected to close in mid-2019, is subject to
the approval of the
About
Forward-looking Statements
This communication may contain
certain forward-looking statements, including certain plans,
expectations, goals, projections, and statements about the benefits of
the transaction, Penn’s plans, objectives, expectations and intentions,
and other statements that are not historical facts. Such statements are
subject to numerous assumptions, risks, and uncertainties. Statements
that do not describe historical or current facts, including statements
about beliefs and expectations, are forward-looking statements.
Forward-looking statements may be identified by words such as “expect,”
“anticipate,” “believe,” “intend,” “estimate,” “plan,” “target,” “goal,”
or similar expressions, or future or conditional verbs such as “will,”
“may,” “might,” “should,” “would,” “could,” or similar variations. The
forward-looking statements are intended to be subject to the safe harbor
provided by Section 27A of the Securities Act of 1933, Section 21E of
the Securities Exchange Act of 1934, and the Private Securities
Litigation Reform Act of 1995.
While there is no assurance that any list of risks and uncertainties or
risk factors is complete, below are certain factors which could cause
actual results to differ materially from those contained or implied in
the forward-looking statements including: risks related to the
acquisition of Greektown and the integration of the businesses and
assets acquired; the possibility that the transaction does not close
when expected or at all because required regulatory or other approvals
are not received or other conditions to closing are not satisfied on a
timeline basis or at all; potential adverse reactions or changes to
business or employee relationships, including those resulting from the
completion of the transaction; the possibility that the anticipated
synergies and other benefits of the transaction are not realized when
expected or at all; local risks including proximate competition,
potential competition, legislative risks, and local relationships; risks
associated with increased leverage from the transaction; and other
factors discussed in the sections entitled “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations” in Penn’s most recent Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed
with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20181114005148/en/
Source:
William J. Fair
Chief Financial Officer
610/373-2400
Joseph N. Jaffoni, Richard Land
JCIR
212/835-8500 or penn@jcir.com