EXHIBIT 99.1
Penn National Gaming Completes Acquisition of Two Mississippi Casinos for $195
Million
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, Inc. (NASDAQ:PENN - news) 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 and the Boomtown Biloxi casino in Biloxi, Mississippi, from Pinnacle
Entertainment, Inc. (NYSE:PNK - news) 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 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. 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 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 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.
Contact:
Penn National
Robert Ippolito, 610/373-2400
Chief Financial Officer
or
Jaffoni & Collins Incorporated
Joseph N. Jaffoni, 212/835-8500
or [email protected]
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