| | ||||||||||||||||||||||||||||
Title of Each Class of
Securities to be Registered |
| | |
Amount
Registered(1) |
| | |
Proposed Maximum
Offering Price Per Unit |
| | |
Proposed Maximum
Aggregate Offering Price |
| | |
Amount of
Registration Fee(2)(3) |
| ||||||||||||
Common stock, $0.01 par value per share
|
| | | | | 16,100,000 | | | | | | $ | 61.00 | | | | | | $ | 982,100,000 | | | | | | $ | 127,476.58 | | |
| | |
Per Share
|
| |
Total
|
| ||||||
Public Offering Price
|
| | | $ | 61.00 | | | | | $ | 854,000,000.00 | | |
Underwriting discounts and commissions(1)
|
| | | $ | 1.525 | | | | | $ | 21,350,000.00 | | |
Proceeds, before expenses, to us
|
| | | $ | 59.475 | | | | | $ | 832,650,000.00 | | |
| Goldman Sachs & Co. LLC | | |
BofA Securities
|
| |
J.P. Morgan
|
|
| Fifth Third Securities | | |
Wells Fargo Securities
|
| |
Truist Securities
|
|
| BTIG | | |
Barclays
|
| |
Citizens Capital Markets
|
|
| Craig-Hallum Capital Group | | |
Macquarie Capital
|
| |
Morgan Stanley
|
|
| Stifel | | |
TD Securities
|
| |
Union Gaming
|
| |
Rosenblatt Securities
|
|
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| | | | S-10 | | | |
| | | | S-14 | | | |
| | | | S-15 | | | |
| | | | S-17 | | | |
| | | | S-20 | | | |
| | | | S-26 | | | |
| | | | S-27 | | | |
| | | | S-28 | | | |
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For the year ended December 31,
|
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(dollars in millions)
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Net income (loss)
|
| | | $ | 43.1 | | | | | $ | 93.5 | | | | | $ | 473.4 | | |
Income tax expense (benefit)
|
| | | | 43.0 | | | | | | (3.6) | | | | | | (498.5) | | |
Loss on early extinguishment of debt
|
| | | | — | | | | | | 21.0 | | | | | | 24.0 | | |
Loss (income) from unconsolidated affiliates
|
| | | | (28.4) | | | | | | (22.3) | | | | | | (18.7) | | |
Interest expense, net
|
| | | | 534.2 | | | | | | 538.4 | | | | | | 463.2 | | |
Other expense (income)
|
| | | | (20.0) | | | | | | 7.1 | | | | | | 2.3 | | |
Operating income (loss)
|
| | | | 571.9 | | | | | | 634.1 | | | | | | 445.7 | | |
Stock-based compensation(1)
|
| | | | 14.9 | | | | | | 12.0 | | | | | | 7.8 | | |
Cash-settled stock-based award variance(1)(2)
|
| | | | 0.8 | | | | | | (19.6) | | | | | | 23.4 | | |
Loss (gain) on disposal of assets(1)
|
| | | | 5.5 | | | | | | 3.2 | | | | | | 0.2 | | |
Contingent purchase price(1)
|
| | | | 7.0 | | | | | | 0.5 | | | | | | (6.8) | | |
Pre-opening and acquisition costs(1)
|
| | | | 22.3 | | | | | | 95.0 | | | | | | 9.7 | | |
Depreciation and amortization
|
| | | | 414.2 | | | | | | 269.0 | | | | | | 267.1 | | |
Impairment losses
|
| | | | 173.1 | | | | | | 34.9 | | | | | | 18.0 | | |
Provision for (recoveries on) loan loss and unfunded loan commitments
|
| | | | — | | | | | | (17.0) | | | | | | 89.8 | | |
Insurance recoveries, net of deductible charges(1)
|
| | | | (3.0) | | | | | | (0.1) | | | | | | (0.3) | | |
Income from unconsolidated affiliates
|
| | | | 28.4 | | | | | | 22.3 | | | | | | 18.7 | | |
Non-operating items for Kansas JV(3)
|
| | | | 3.7 | | | | | | 5.1 | | | | | | 5.8 | | |
Adjusted EBITDA
|
| | | | 1,238.8 | | | | | | 1,039.4 | | | | | | 879.1 | | |
Rent expense associated with triple net operating leases(1)
|
| | | | 366.4 | | | | | | 3.8 | | | | | | — | | |
Adjusted EBITDAR
|
| | | $ | 1,605.2 | | | | | $ | 1,043.2 | | | | | $ | 879.1 | | |
| | | | | | | | | | | — | | | | | | — | | |
Net income margin
|
| | | | 0.8% | | | | | | 2.6% | | | | | | 15.0% | | |
Adjusted EBITDAR margin
|
| | | | 30.3% | | | | | | 29.1% | | | | | | 27.9% | | |
(dollars in millions)
|
| |
For the six months
ended June 30, 2020 |
| |||
Net income (loss)
|
| | | $ | (823.0) | | |
Income tax expense (benefit)
|
| | | | (157.9) | | |
Loss on early extinguishment of debt
|
| | | | — | | |
Loss (income) from unconsolidated affiliates
|
| | | | (2.4) | | |
Interest expense, net
|
| | | | 264.8 | | |
Other expense (income)
|
| | | | (7.5) | | |
Operating income (loss)
|
| | | | (726.0) | | |
Stock-based compensation(1)
|
| | | | 8.9 | | |
Cash-settled stock-based award variance(1)(2)
|
| | | | 7.2 | | |
Loss (gain) on disposal of assets(1)
|
| | | | (27.9) | | |
Contingent purchase price(1)
|
| | | | (1.4) | | |
Pre-opening and acquisition costs(1)
|
| | | | 6.7 | | |
Depreciation and amortization
|
| | | | 187.6 | | |
Impairment losses
|
| | | | 616.1 | | |
Insurance recoveries, net of deductible charges(1)
|
| | | | (0.1) | | |
Income from unconsolidated affiliates
|
| | | | 2.4 | | |
Non-operating items of equity method investments(3)
|
| | | | 2.0 | | |
Adjusted EBITDA
|
| | | | 75.5 | | |
Rent expense associated with triple net operating leases(1)
|
| | | | 201.3 | | |
Adjusted EBITDAR
|
| | | $ | 276.8 | | |
| | | | | — | | |
Net income (loss) margin
|
| | | | -57.9% | | |
Adjusted EBITDAR margin
|
| | | | 19.5% | | |
| | |
As of June 30, 2020
|
| |||||||||
(in millions, except share and per share data)
|
| |
Actual
|
| |
As Adjusted
|
| ||||||
Cash and cash equivalents
|
| | | $ | 1,244.3 | | | | | $ | 2,076.3 | | |
Total long term debt, net of debt discounts and debt issuance costs(1)
|
| | | $ | 3,116.9 | | | | | $ | 3,116.9 | | |
Stockholders’ equity
|
| | | | | | | | | | | | |
Series B Preferred stock ($0.01 par value, 1,000,000 shares authorized, no shares issued and outstanding), Actual and As Adjusted
|
| | | | — | | | | | | — | | |
Series C Preferred stock ($0.01 par value, 18,500 shares authorized, no shares issued and outstanding), Actual and As Adjusted
|
| | | | — | | | | | | — | | |
Series D Preferred stock ($0.01 par value, 5,000 shares authorized, 883 shares issued and outstanding)
|
| | | | 23.1 | | | | | | 23.1 | | |
Common stock ($0.01 par value, 200,000,000 shares authorized, 139,602,483 and
137,435,090 shares issued and shares outstanding, respectively), Actual; ($0.01 par value, 200,000,000 shares authorized, 153,602,483 and 151,435,090 shares issued and shares outstanding, respectively), As Adjusted |
| | | | 1.4 | | | | | | 1.5 | | |
Treasury stock, at cost, (2,167,393 shares held)
|
| | | | (28.4) | | | | | | (28.4) | | |
Additional paid-in capital
|
| | | | 2,170.4 | | | | | | 3,002.3 | | |
Retained earnings (accumulated deficit)
|
| | | | (660.3) | | | | | | (660.3) | | |
Total Penn National stockholders’ equity
|
| | | | 1,506.2 | | | | | | 2,338.2 | | |
Non-controlling interest
|
| | | | (1.3) | | | | | | (1.3) | | |
Total stockholders’ equity
|
| | | $ | 1,504.9 | | | | | $ | 2,336.9 | | |
Total capitalization
|
| | | $ | 4,621.8 | | | | | $ | 5,453.8 | | |
Underwriter
|
| |
Number of initial
common shares |
| |||
Goldman Sachs & Co. LLC
|
| | | | 2,800,000 | | |
BofA Securities, Inc.
|
| | | | 2,100,000 | | |
J.P. Morgan Securities LLC
|
| | | | 2,100,000 | | |
Fifth Third Securities, Inc.
|
| | | | 1,400,000 | | |
Wells Fargo Securities, LLC
|
| | | | 1,400,000 | | |
Truist Securities, Inc.
|
| | | | 1,260,000 | | |
BTIG, LLC
|
| | | | 560,000 | | |
Citizens Capital Markets, Inc.
|
| | | | 280,000 | | |
TD Securities (USA) LLC
|
| | | | 280,000 | | |
Macquarie Capital (USA) Inc.
|
| | | | 280,000 | | |
Barclays Capital Inc.
|
| | | | 280,000 | | |
Morgan Stanley & Co, LLC
|
| | | | 280,000 | | |
Stifel, Nicolaus and Company, Inc.
|
| | | | 280,000 | | |
Union Gaming Securities, LLC
|
| | | | 280,000 | | |
Craig-Hallum Capital Group LLC
|
| | | | 280,000 | | |
Rosenblatt Securities Inc.
|
| | | | 140,000 | | |
Total
|
| | | | 14,000,000 | | |
| | |
Per Share
|
| |
Gross
Without Option |
| |
Gross
With Option |
| |||||||||
Public offering price
|
| | | $ | 61.00 | | | | | $ | 854,000,000.00 | | | | | $ | 982,100,000.00 | | |
Underwriting discount
|
| | | $ | 1.525 | | | | | $ | 21,350,000.00 | | | | | $ | 24,552,500.00 | | |
Proceeds, before expenses, to us
|
| | | $ | 59.475 | | | | | $ | 832,650,000.00 | | | | | $ | 957,547,500.00 | | |
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