Penn National Gaming, Inc. (PENN: Nasdaq) (the “Company”) announced today
that it is seeking certain amendments to its existing $2.725 billion senior
secured credit facility (the “Credit Facility”). The requested amendments
relate to: (1) modification of the applicable covenants to enable the
Company to repurchase up to $200 million of its equity or debt securities;
(2) modification of the Company’s capital expenditure covenant to increase
certain permitted expenditures consistent with the Company’s development and
expansion projects as announced in the Company’s second quarter earnings
release on July 27, 2006; (3) modification of the Company’s collateral
documents in accordance with requirements of the Pennsylvania gaming
authorities and (4) certain other matters. The amendment requires the
approval of lenders holding a majority of the outstanding commitments and
loans under the Credit Facility. There can be no assurance that the
amendments will be approved as described above. The Board of Directors of
the Company has not yet authorized the repurchase of its common stock or
debt securities.