Penn National Gaming (PENN) Q2 Revenue Guidance Tops Consensus, Offers $400M of Notes

(Updated - June 24, 2021 7:46 AM EDT)

Penn National Gaming, Inc. (NASDAQ: PENN) (“Penn National,” “we,” or the “Company”) today announced that it plans to offer, subject to market and other conditions, $400 million aggregate principal amount of eight-year senior unsecured notes in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). Penn National intends to use proceeds of the proposed offering for general corporate purposes.

The Company currently expects that our consolidated revenues for the three months ended June 30, 2021 will range from $1,450 million to $1,555 million and our consolidated Adjusted EBITDAR for the three months ended June 30, 2021 will range from $540 million to $580 million. We expect Adjusted EBITDA for the three months ended June 30, 2021 to range from $420 million to $460 million. The midpoint of our expected revenue and Adjusted EBITDAR ranges reflect a quarterly sequential improvement of 18% and 25%, respectively, and Adjusted EBITDAR margin improvement of 220 basis points. When compared to the three months ended June 30, 2019, we expect revenue, Adjusted EBITDAR and Adjusted EBITDAR margin to increase by 10%, 32%, and 625 basis points, respectively. 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.

(Consensus sees June quarter revenue of $1.35 billion)

The notes will not be registered under the Securities Act, and they may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Accordingly, the notes are being offered and sold only (A) to persons reasonably believed to be qualified institutional buyers in compliance with Rule 144A under the Securities Act and (B) outside the United States to persons other than U.S. persons in compliance with Regulation S under the Securities Act. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the notes in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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