Indiana Gaming Commission Grants GLP Capital, L.P., a Subsidiary of
Gaming and Leisure Properties, Inc., a Temporary Supplier License as
Landlord of Hollywood Casino Lawrenceburg
WYOMISSING, Pa.--(BUSINESS WIRE)--May. 1, 2013--
Penn National Gaming, Inc. (PENN: Nasdaq) (the “Company”) announced
today that Gaming and Leisure Properties, Inc. (“GLPI”) will be the name
of the newly formed, publicly traded real estate investment trust (REIT)
that would hold substantially all of Penn National’s real property
assets following the proposed separation of the Company’s operating
assets from its real property assets. In conjunction with the
announcement, the Company also reported that it received notification
from the Indiana Gaming Commission (“IGC”) that it has granted GLP
Capital, L.P. (“GLP”), a subsidiary of GLPI, a temporary supplier
license.
GLP was formed in conjunction with the proposed separation of Penn
National’s gaming operating assets and real property assets, and would
be the owner of the real estate at Hollywood Casino Lawrenceburg. Gaming
laws in Indiana specify that a landlord for a gaming facility must apply
for and receive a supplier license and the temporary license stipulates
that it allows GLP to acquire and lease back real estate used in gaming
services at Hollywood Casino Lawrenceburg. GLP’s temporary license is
for one year and is subject to the Commission’s final determination on
whether Penn National’s planned real estate investment trust transaction
is approved by a vote of the Commission. Pending final approval by the
Commission, the temporary license allows GLP to operate in Indiana with
the same ability as if it possessed a permanent license.
Last week, Penn National announced that its subsidiary, Mountainview
Thoroughbred Racing Association, received initial approval from the
Pennsylvania Gaming Control Board (“PGCB”) for a corporate restructuring
related to the proposed separation. Mountainview Thoroughbred Racing
Association does business as Hollywood Casino at Penn National Race
Course. As part of the initial approval, the PGCB indicated that it
approved the concept of the corporate restructuring subject to the
receipt and review of the usual and customary financing documents,
receipt of certain applications for the appropriate entities, officers
and directors and other information.
On November 15, 2012, Penn National announced that it intended to pursue
a plan to separate its gaming operating assets and real property assets
into two publicly traded companies – an operating entity, Penn National
Gaming, and a newly formed, publicly traded REIT, GLPI – and that it
received a private letter ruling from the Internal Revenue Service
related to the treatment of the separation and the qualification of GLPI
as a REIT, which is subject to certain qualifications and based on
certain representations and statements made by Penn National . The
completion of the proposed transaction is contingent on receipt of
approvals from gaming regulators in certain states where Penn National
has operations as well as other conditions.
Based on Penn National’s current real estate portfolio, GLPI is expected
to initially own the real estate for 19 casino facilities, which have a
total of over 2,900 acres of land and 6.6 million square feet of
building space. GLPI would lease back to the operating company 17 of
these casino facilities and own and operate two gaming facilities in
Baton Rouge, Louisiana and Perryville, Maryland.
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests in gaming
and racing facilities with a focus on slot machine entertainment. The
Company presently operates twenty-nine facilities in nineteen
jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa,
Kansas, Louisiana, Maine, Maryland, Mississippi, Missouri, Nevada, New
Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and
Ontario. In aggregate, Penn National's operated facilities currently
feature approximately 34,800 gaming machines, approximately 850 table
games, 2,900 hotel rooms and approximately 1.6 million square feet of
gaming floor space.
Forward-looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Actual
results may vary materially from expectations. Although Penn National
Gaming, Inc. and its subsidiaries (collectively, the “Company” or
“PENN”) believe that our expectations are based on reasonable
assumptions within the bounds of our knowledge of our business and
operations, there can be no assurance that actual results will not
differ materially from our expectations. Meaningful factors that could
cause actual results to differ from expectations include, but are not
limited to, risks related to the following: the proposed separation of
PropCo (GLPI) from PENN, including our ability to timely receive all
necessary consents and approvals, the anticipated timing of the proposed
separation, the expected tax treatment of the proposed transaction, the
ability of each of the post spin Company and PropCo (GLPI) to conduct
and expand their respective businesses following the proposed spin-off,
and the diversion of management’s attention from traditional business
concerns; our ability to raise the capital necessary to finance the
spin-off, including the redemption of our existing debt and preferred
stock obligations, the anticipated cash portion of our special E&P
dividend and transaction costs; our ability to obtain timely regulatory
approvals required to own, develop and/or operate our facilities, or
other delays or impediments to completing our planned acquisitions or
projects, including favorable resolution of any related litigation,
including the appeal by the Ohio Roundtable addressing the legality of
video lottery terminals in Ohio; our ability to secure state and local
permits and approvals (including from the Ohio State Racing Commission)
necessary for construction; construction factors, including delays,
unexpected remediation costs, local opposition and increased cost of
labor and materials; our ability to reach agreements with the
thoroughbred and harness horseman in Ohio in connection with the
proposed relocations and to otherwise maintain agreements with our
horseman, pari-mutuel clerks and other organized labor groups; the
impact of terrorism and other international hostilities; and other
factors as discussed in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2012, subsequent Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K as filed with the SEC. The Company does
not intend to update publicly any forward-looking statements except as
required by law.
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Source: Penn National Gaming, Inc.
Penn National Gaming, Inc.
William J. Clifford, 610-373-2400
Chief
Financial Officer
or
JCIR
Joseph N. Jaffoni, Richard Land
212-835-8500
or penn@jcir.com