Penn National (PENN) stock up on US$400 mn unsecured notes offering

Summary

  • Penn National to offer US$400 million senior unsecured notes in private bidding.
  • The company expects increased revenue in the current quarter ending on June 30.
  • The PENN stock gained 130% in the past year.

The stock of Penn National Gaming, Inc. (NASDAQ: PENN) was trading 2.37% higher at US$78.62 from the previous close at 11:25 am ET on June 24.

The company on Thursday announced plans to offer eight-year senior unsecured notes amounting to US$400 million through private offering. It intends to use the proceeds for general corporate purpose.

PENN runs scores gaming and racing properties and video gaming terminals (VGT) across many states in the US. It was founded in in Wyomissing, Pennsylvania, in 1972.

Source: Pixabay.

Its market cap is US$12.13 billion. The share has been active over the past five days.

The company’s revenue for the quarter ended March 31, 2021, was US$1.27 billion, 14% up year over year. It expects its consolidated revenue for the current quarter ending on June 30, to be between US$1.45 billion to US$1.56 billion.

It booked a net income of US$ 91 million attributable to Penn National in the March quarter, 2021, compared to a net loss of US$608.6 million in the same quarter in the previous year.

PENN has a presence in 19 states with 41 properties. As of December 31, 2020, it had 40 casinos and racetracks, 43,917 slot/VLT gaming machines, 377 VGT locations, 8,791 hotel rooms, 209 food outlets, and 1,263 tables.

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On June 7, the company announced to appoint Ms. Vimla Black Gupta to the board of directors, increasing the board size to nine members. PENN generated approximately 85% of its revenue from gaming, the balance 15% came from food and beverage, hotel, and other segments.

Its cash and cash equivalents totaled US$2.06 billion at the end of the March quarter, 2021, compared to US$1.85 billion at the end of quarter in the year-ago period.

Gaming industry or any type of entertainment industry depends on discretionary spending by consumers. The gaming industry like others has been impacted due to Covid-19.

Many other factors, such as natural calamity, economy, fuel price, transportation, income tax, unemployment, and inflation may impact the discretionary spending-based industries.

However, Penn National gaming has been showing a continuous revenue growth for the last four quarters. PENN stock grown 130% in the past year. It closed at US$76.8 on June 23, 2021.

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Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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