Penn National Gaming aims to reduce borrowings under credit facilities

By Marisa Wong

Morgantown, W.Va., Oct. 20 – Penn National Gaming, Inc. said it intends to reduce borrowings under its credit facilities using funds received from repayment of capital previously advanced to Jamul Indian Village of California.

Since 2012 Penn National has provided about $331 million of financing to Jamul Indian Village for the construction of the Hollywood Casino Jamul – San Diego and for the purchase of tribal debt.

The tribe has repaid about $274 million of the capital advanced, according to a press release.

Timothy J. Wilmott, president and chief executive officer of Penn National, said in the release, “We intend to use the approximately $274 million of proceeds we are receiving to reduce borrowings under our credit facilities and further strengthen our liquidity position.

“Pro forma for the recent debt repayments, our total gross leverage ratio at Sept. 30 declined to approximately 5.76x. Furthermore, with the addition of fees resulting from the Jamul management and licensing agreements to our existing operating base and our other recently announced accretive transactions, Penn National has further diversified our free cash flow mix, allowing us to continue to reduce leverage and maintain high levels of liquidity.”

Penn National Gaming owns and operates gaming and racing facilities and video gaming terminal operations. It is based in Wyomissing, Pa.

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