WYOMISSING, Pa., June 14 (Reuters) - Penn National Gaming Inc. (NasdaqNM:PENN) said on Wednesday that it hopes
to raise $350 million with bank and institutional lenders through a financing commitment letter it entered into
with Lehman Brothers Inc. and CIBC World Markets Corp.
The racetrack and off-track wagering facility operator plans to use proceeds from the financing to complete its
$195 million acquisition of two Mississippi casinos from Pinnacle Entertainment Inc. (NYSE:PNK), for working capital
purposes and to refinance debt.
Penn National expects to close the financing by late July.
Lehman Brothers will serve as the book running manager and lead arranger and CIBC will act as the co-book running
manager and co-lead arranger. Lehman Commercial Paper Inc. is the syndication agent and Canadian Imperial Bank
of Commerce is the Administrative Agent for the deal.
Penn National is buying Pinnacle's Magic hotel, casino, golf resort, recreational vehicle park and marina in Bay
St. Louis, Miss. and the Boomtown Biloxi casino in Biloxi, Miss.
Pinnacle is set to be acquired by Harveys Casino Resorts in a $675 million stock deal at the end of the year.