Penn National Gaming Acquires M Resort for $230.5M

Penn National Gaming PENN announced today that following its October 2010 purchase of all of the outstanding debt of M Resort for $230.5 million and the receipt of requisite regulatory approvals, it has acquired the business in exchange for the debt. Penn National purchased the M Resort debt from Bank of Scotland plc in October 2010 at which time the Company also secured the right to acquire the business of M Resort in exchange for the property's outstanding debt obligations. M Resort was developed by Anthony Marnell III, who will serve as President of the property following its acquisition by Penn National. Peter M. Carlino, Chief Executive Officer of Penn National commented, “The acquisition of M Resort is another compelling opportunity to deliver growth and returns to our shareholders by diversifying our asset base through prudent deployment of our exceptional balance sheet and adhering to our focus on operating discipline. Through this transaction, M Resort has emerged as a financially sound, debt free, upscale locals and destination-oriented casino resort with extensive high-quality amenities. Located ten miles south of the Las Vegas Strip with access to I-15, M Resort is a premiere locals-oriented facility as well as a great property to be marketed to Southern California customers as well as to meeting and convention groups. In addition, M Resort is an attractive asset that we plan to continue marketing to our database of over 12 million regional gaming customers by offering them a world-class Las Vegas gaming experience. Since sending M Resort hotel offers to some of our highest value players earlier this year, the facility has booked over 1,300 incremental room nights which increased occupancy by almost 4 percent and contributed to first quarter property revenue of $39.8 million and EBITDA of $6.2 million.”