Penn National Gaming Completes Acquisition of Two Mississippi Casinos for $195 Million.Business Editors BAY ST. LOUIS and BILOXI, Miss. and WYOMISSING and EAST STROUDSBURG, Penn.--(BUSINESS WIRE)-- Aug. 8, 2000 - Opens Eleventh Off-Track Wagering Facility in East Stroudsburg, Pennsylvania - Penn National Gaming Penn National Gaming, Inc. NASDAQ: PENN is a diversified owner and operator of casino properties, as well as horse racetracks and associated off-track betting facilities primarily in the United States. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :PENN) announced today that it completed the acquisition of all of the assets of the Casino Magic hotel, casino, golf resort, recreational vehicle (RV) park and marina in Bay St. Louis, Mississippi Bay Saint Louis is a city located in Hancock County, Mississippi. It is part of the Gulfport-Biloxi, Mississippi Metropolitan Statistical Area. As of the 2000 census, the city had a total population of 8,209. It is the county seat of Hancock CountyGR6. and the Boomtown Biloxi casino in Biloxi, Mississippi, from Pinnacle Entertainment, Inc. (NYSE NYSE See: New York Stock Exchange :PNK PNK Polynucleotide Kinase PNK Pontianak, Indonesia - Supadio (Airport Code) PNK Prozessnahe Komponente (German) ) for $195 million cash. In addition to acquiring all of the operating assets and related operations of the Casino Magic Bay St. Louis and Boomtown Biloxi properties, Penn National also licensed the right to use the Boomtown and Casino Magic names and marks at the Bay St. Louis and Biloxi properties. Commenting on the acquisition, Peter M. Carlino, Chief Executive Officer of Penn National, said, "Penn National Gaming is opportunistically, and at attractive valuations, building a portfolio of well established gaming properties. Reflecting the strength of their market position and the extraordinary team of employees and operating management, Casino Magic Bay St. Louis and Boomtown Biloxi generated revenues of $80.8 million and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $19.0 million in the first six months of 2000, with both figures exceeding the results of a year earlier despite increased market competition. These are excellent performances from which to build, and we have developed preliminary plans to update and upgrade these properties which we believe can have a positive effect on future operating results." Concurrently with the completion of the acquisition, Penn National also executed a new $350 million credit facility, as previously announced, and successfully completed the tender offer for its 10 5/8% Senior Notes due 2004, all of which were tendered by the holders. Penn National also reported that it opened its eleventh off-track wagering (OTW) facility in East Stroudsburg, Pennsylvania East Stroudsburg is a borough in Monroe County, Pennsylvania, United States. It is located in the Poconos region of the state. Originally known as "Dansbury", East Stroudsburg was renamed for geographic reasons when the Delaware, Lackawanna, and Western Railroad opened a station . Penn National operates 11 of the 23 OTW's currently authorized in Pennsylvania. In addition to the Mississippi casinos, Penn National owns three racetracks and eleven off-track wagering (OTW) facilities located in Pennsylvania (two tracks and eleven OTWs) and West Virginia (one track). The Company's Charles Town Races in West Virginia also features 1,500 slot machines. Penn National intends (subject to certain conditions) to acquire the CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. Holdings, Inc. (Carnival Resorts and Casinos), an experienced operator of gaming facilities and Louisiana Casino Cruises, Inc. Except for the historical information in this press release, this press release includes forward-looking statements which are made pursuant to the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that involve risks and uncertainties, including, but not limited to, quarterly fluctuations in results, the management of growth, weather, regulatory changes, and other risks detailed from time to time in the Penn National's Securities and Exchange Commission filings. Actual results may differ materially from such information set forth herein. |
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