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PNG aims to raise up to $982.1m through public offering

News

US casino operator Penn National Gaming (PNG) has announced details of a new underwritten public offering, through which it could generate up to $982.1m in funds.

The offering will see PNG make available 14m shares of its common stock – $0.01 par value per share – at a public price of $61.00 per share.

Before deducting underwriting discounts and other expenses, PNG said proceeds from the offering are expected to amount to approximately $854m.

However, if the underwriters in the offering choose to fully exercise their option to purchase additional shares of common stock, then PNG could raise as much as $982.1m from the offering.

Underwriters have a 30-day option to purchase up to 2.1m of additional shares of PNG’s common stock at the offering price, less the underwriting discount.

PNG said that it will use any proceeds from the offering for general corporate purposes, including investments in long-term growth initiatives, its land-based properties and its omni-channel strategy.

Subject to certain customary conditions, PNG expects the offering to close on September 29.

The offering comes after PNG this month rolled out its real-money sportsbook, featuring the Barstool Sports brand, in Pennsylvania. The mobile app had a soft launch on September 15, before being fully launched on September 18.

PNG said between the full-launch date and September 21, the sportsbook app was downloaded approximately 30,000 times, while 24,000 users registered to use the new service. When including the test period, PNG saw around 35,000 downloads of the app.

In terms of spend, the average initial deposit by players stood at $243, with users in Pennsylvania wagering $11m during the first weekend of full launch.

This month also saw PNG enter into market access deals with Kindred Group, under which the Unibet operator will be able to offer online betting and gaming in Illinois and Ohio.

In Illinois, Kindred’s Unibet brand will partner with Argosy Casino Alton in the greater St. Louis area to launch its online product.

Meanwhile, in Ohio, Kindred will also partner with PNG Hollywood Casino, which has facilities in Columbus and Toledo, as well as a site at Dayton Raceway.