Penn buys Harrah's St. Louis
Penn National, who owns Hollywood Casinos
among other casinos, is set to buy Harrah's in St. Louis for $610M. Penn National is also known to host WPT tournaments often in their casinos. Harrah's is itself known for hosting WSOP
tournaments, though it's not uncommon for the WPT and WSOP to host tourneys in other casinos.
CHICAGO (MarketWatch) -- Penn National Gaming Inc. said late Monday that it will buy Harrah's St. Louis from debt-laden Caesars Entertainment Corp. for $610 million. Upon closing, which the company expects to occur in the second half of this year, Penn will re-flag the property under its existing Hollywood brand.
Penn plans to finance the deal via an add-on to its existing credit line, which will raise its debt to earnings before interest, taxes, depreciation and amortization (EBITDA) ratio -- a closely-watched industry metric -- to 3.25 times from 2.75.
"The planned addition of Harrah's St. Louis will further expand Penn National's regional operating platform with a facility that is extremely well-positioned in a large metropolitan market," said Peter Carlino, chief executive of Penn, in announcing the transaction.