Penn National obtains lenders' waivers and discloses approximate debt balance

(PRESS RELEASE) -- Penn National Gaming, Inc. today announced that it received waivers from its lenders under the Company’s senior secured credit facility in connection with the change in the classification of the Company’s Master Lease (the “Master Lease”) with Gaming and Leisure Properties, Inc. (“GLPI”) from an operating lease to a financing obligation, as announced on October 22, 2015, which extends the period for the Company to file its financial statements for the quarter ended September 30, 2015 from November 14, 2015 to January 15, 2016. In addition, the Company anticipates that, as a result of this change in lease classification, it will report additional liabilities of approximately $3.5 billion as of September 30, 2015 which represents the present value of the future minimum lease payments to GLPI under the Master Lease.

As announced on October 22, 2015, the Company’s cash flows for all prior and future periods will not be affected by this change in accounting, nor will its current tax treatment with respect to the transaction. In addition, the adjustments in the restatement will have no impact on the following indicators of the Company’s performance:

-- the Company’s cash position;
-- the Company’s leverage ratios under its senior credit facility and other debt instruments (as the terms of those obligations require the Master Lease to be treated as an operating lease regardless of the treatment required under GAAP);
-- the Company’s revenues; or
-- the Company’s rental payments or other obligations under the Master Lease.