While the $6.1 billion buyout of casino and racetrack owner Penn National Gaming was agreed a year ago, completion looks likely to be delayed for up to 6 months with news that the required regulatory approvals have not been received. The original completion date was expected to be the 15th June, although the deal time is certain to be extended.
Even though the regulatory issue is something which cannot be ignored, there are many in the market concerned that Fortress Investment Group and Centerbridge Partners may be struggling to raise the finance during the ongoing credit crunch. It will be interesting to see how this deal progresses as a number of deals in the industry have collapsed over the last few months.
The issue of finance was never really a major problem for the casino industry prior to the credit crunch, but now finance costs have risen sharply and liquidity has disappeared in some areas of the market, many large deals have been put on hold. There is no official confirmation that the Penn National Gaming deal is in trouble, but it would seem likely that the current environment has not assisted the process of financing the transaction.
While the $6.1 billion buyout of casino and racetrack owner Penn National Gaming was agreed a year ago, completion looks likely to be delayed for up to 6 months with news that the required regulatory approvals have not been received. The original completion date was expected to be the 15th June, although the deal time is certain to be extended.