PENN Entertainment Pursues Four New Growth Projects

PENN Entertainment Pursues Four New Growth Projects
  • PENN Entertainment Inc PENN plans to relocate its riverboat casinos in Aurora and Joliet, Illinois, to new land-based facilities.
  • The Aurora development will include the transfer of certain parcels of land from the city, and up to $50 million of the project will be funded by the city through new bond issuance.
  • The company also intends to build a new hotel at Hollywood Columbus in Ohio and a second hotel tower at the M Resort in Henderson, Nevada.
  • In connection with the above proposals, PENN has agreed with Gaming And Leisure Properties, Inc. GLPI to create a new master lease, including the two new facilities in Aurora and Joliet, in addition to Hollywood Columbus (Ohio), Hollywood Toledo (Ohio), the M Resort (Nevada), the Meadows (Pennsylvania), and Hollywood Perryville (Maryland).
  • GLPI will provide up to $225 million at a 7.75% cap rate for the Aurora project.
  • PENN may elect to receive up to $350 million of funding for the Columbus, Joliet, and M Resort projects.
  • "The overall estimated budget for these new growth projects is approximately $850 million," said PENN CEO Jay Snowden.
  • Price Action: PENN shares are trading lower by 0.59% at $30.50 in premarket on the last check Monday.

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