Penn National Gaming ignites $400m credit note offering
Igaming operator also reveals estimated 10% Q2 revenue uplift to highs of $1.55bn
Penn National Gaming has said it will launch a private offering of more than $400m aggregate eight-year senior unsecured credit notes.
The operator has said funds from the offering will be used for general corporate purposes.
Notes are only being offered to individuals deemed to be qualified institutional investors, as well as individuals outside the US which comply with regulations contained within the US Securities Act.
US-based investors are barred from participating in the offer.
In addition to revealing the private offering, Penn has confirmed estimated Q2 revenue ranging from $1.45bn to $1.55bn, a rise of 10% year on year.
Penn further expects consolidated adjusted EBITDAR (a variation of EBITDA which excludes rent and restructuring costs) of between $540m and $580m, up 32% annually.
Adjusted EBITDA is expected to range between $420m and $460m.
“We believe this year over year and sequential improvement not only highlights continued strong demand trends, but also underscores our ability to drive sustainable margin improvement,” Penn said in an accompanying statement.
In May, Penn National Gaming acquired independent games developer HitPoint Studios and its RMG arm LuckyPoint as part of efforts to bring its casino game development in-house.
The deal led to the establishment of Penn Game Studios, an internal content development business designed to create exclusive igaming products for PNG brands.
Massachusetts-based HitPoint has created mobile games from Microsoft, EA, PopCap, Disney, Google, and NBCUniversal.
The developer previously spun out its LuckyPoint business to produce RMG table and slots games, as well as retro arcade games and puzzles via its remote gaming server and in-house technology platform.
Once the acquisition closes, PNG will integrate HitPoint’s 30-strong staff, which is comprised of designers, artists, and engineers.