Penn National Gaming Obtains Lenders’ Waivers & Discloses Approximate Debt Balance with Respect to Its Previously Announced...
October 28 2015 - 6:20PM
Business Wire
Penn National Gaming, Inc. (PENN: Nasdaq) (“Penn National
Gaming” or the “Company”) today announced that it received waivers
from its lenders under the Company’s senior secured credit facility
in connection with the change in the classification of the
Company’s Master Lease (the “Master Lease”) with Gaming and Leisure
Properties, Inc. (“GLPI”) from an operating lease to a financing
obligation, as announced on October 22, 2015, which extends the
period for the Company to file its financial statements for the
quarter ended September 30, 2015 from November 14, 2015 to January
15, 2016. In addition, the Company anticipates that, as a result of
this change in lease classification, it will report additional
liabilities of approximately $3.5 billion as of September 30, 2015
which represents the present value of the future minimum lease
payments to GLPI under the Master Lease.
As announced on October 22, 2015, the Company’s cash flows for
all prior and future periods will not be affected by this change in
accounting, nor will its current tax treatment with respect to the
transaction. In addition, the adjustments in the restatement will
have no impact on the following indicators of the Company’s
performance:
- the Company’s cash position;
- the Company’s leverage ratios under its
senior credit facility and other debt instruments (as the terms of
those obligations require the Master Lease to be treated as an
operating lease regardless of the treatment required under
GAAP);
- the Company’s revenues; or
- the Company’s rental payments or other
obligations under the Master Lease.
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests
in gaming and racing facilities and video gaming terminal
operations with a focus on slot machine entertainment. At September
30, 2015, the Company operated twenty-seven facilities in seventeen
jurisdictions, including Florida, Illinois, Indiana, Kansas, Maine,
Massachusetts, Maryland, Mississippi, Missouri, Nevada, New Jersey,
New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario.
At September 30, 2015, in aggregate, Penn National Gaming operated
approximately 34,000 gaming machines, 800 table games and 4,600
hotel rooms.
Forward-looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements can be identified by the use of forward
looking terminology such as “expects,” “believes,” “estimates,”
“projects,” “intends,” “plans,” “seeks,” “may,” “will,” “should” or
“anticipates” or the negative or other variations of these or
similar words. Although the Company believes that our expectations
are based on reasonable assumptions within the bounds of our
knowledge of our business, there can be no assurance that actual
results, including the impact of the restatement, 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 relating to the final impact of the
restatement on the Company’s financial statements; the impact of
the restatement on the Company’s evaluation of the effectiveness of
its internal control over financial reporting; delays in the
preparation of the financial statements; the risk that additional
information will come to light during the course of the preparation
of restated financial statements that alters the scope or magnitude
of the restatement; potential reviews, litigation or other
proceedings by governmental authorities, stockholders or other
parties; the risk that the Company will be unable to obtain any
required waivers under the Company’s note indenture with respect to
a significant delay in filing periodic reports with the Securities
and Exchange Commission; risks relating to our liquidity and
ability to raise capital; risks related to the impact on the
restatement on the Company’s reputation, development projects,
joint ventures and other commercial contracts; and other factors as
discussed in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2014, subsequent Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K, each as filed
with the United States Securities and Exchange Commission. The
Company does not intend to update publicly any forward-looking
statements except as required by law. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed
in this press release may not occur.
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version on businesswire.com: http://www.businesswire.com/news/home/20151028006874/en/
Penn National Gaming, Inc.Saul V. Reibstein, 610-401-2049Chief
Financial OfficerorJCIRJoseph N. Jaffoni / Richard Land,
212-835-8500penn@jcir.com
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