Penn National Gaming Buyout

Penn National Gaming (PENN)
Fortress Investment Group (FIG) / Centerbridge Partners
$8.9B Buyout

Summary

Casino and horseracing company to be acquired by investment companies

$67 per PENN share; $8.9B total
Including $2.8B outstanding debt
If deal not closed by 6.15.08 per share price will increase by $0.0149 per day
PENNstock chart
FIGstock chart

Announced 6.15.07

Acquisition approved 12.12.07

Advisors

Financial

PENN : Lazard
FIG / Centerbridge : Wachovia

Legal

PENN : Wachtell Lipton Rosen Katz
FIG / Centerbridge : Willkie Farr & Gallagher

Merger Agreement

General

EDGAR filing
Hyperlinked version
Detailed hyperlinked index follows

Article I Definitions

1.1 Definitions
1.2 Terms Generally

Article II The Merger

2.1 The Merger
2.2 Conversion of Securities
2.3 Payment of Cash for Merger Shares and Company
Options
2.4 Treatment of Company Options

Article III The Surviving Corporation

3.1 Articles of Incorporation
3.2 Bylaws
3.3 Directors and Officers
3.4 Headquarters of the Surviving Corporation

Article IV Company Reps

4.1 Corporate Existence and Power
4.2 Corporate Authorization
4.3 Governmental Authorization
4.4 Non-contravention
4.5 Capitalization
4.6 Reports and Financial Statements
4.7 Undisclosed Liabilities
4.8 Disclosure Documents
4.9 Absence of Certain Changes or Events
4.10 Finders Fees
4.11 Opinion of Financial Advisor
4.12 Anti-takeover Provisions
4.13 Compliance with Laws
4.14 Employee Matters
4.15 Employees
4.16 Litigation
4.17 Tax Matters
4.18 Environmental Matters
4.19 Intellectual Property
4.20 Real Property; Vessels
4.21 Material Contracts
4.22 Insurance
4.23 Gaming Approvals

Article V Parent and Merger Sub Reps

5.1 Entity Existence and Power
5.2 Corporate Authorization
5.3 Governmental Authorization
5.4 Non-contravention
5.5 Disclosure Documents
5.6 Finders Fees
5.7 Financing
5.8 Gaming Approvals and Licensing Matters
5.9 Parent and Merger Sub
5.10 Ownership of Shares
5.11 Interest in Competitors
5.12 No Other Representations and Warranties
5.13 Solvency

Article VI Conduct of Business Pending the Merger

6.1 Conduct of the Company and Subsidiaries
6.2 Conduct of Parent and Merger Sub
6.3 No Control of Other Partys Business

Article VII Additional Agreements

7.1 Shareholder Meeting; Proxy Material
7.2 Best Efforts
7.3 Access to Information
7.4 Solicitation
7.5 Director and Officer Liability
7.6 Takeover Statutes
7.7 Public Announcements
7.8 Employee Matters
7.9 Financing
7.10 Notices of Certain Events
7.11 Confidentiality Agreements
7.12 Rule 16b-3
7.13 Treatment of Certain Notes

Article VIII Conditions to the Merger

8.1 Each Party
8.2 Parent And Merger Sub
8.3 Company

Article IX Termination

9.1 Termination
9.2 Termination Fee
9.3 Effect of Termination

Article X Miscellaneous

10.1 Notices
10.2 Survival of Representations and Warranties
10.3 Expenses
10.4 Amendment
10.5 Waiver
10.6 Successors and Assigns
10.7 Governing Law
10.8 Counterparts; Effectiveness; Third Party Beneficiaries
10.9 Severability
10.10 Entire Agreement
10.11 Jurisdiction
10.12 Authorship
10.13 Remedies

SEC Filings

Schedule 13D 6.25.07

Carlino Family

Proxy Solicitation

Definitive proxy statement 11.07.07

Table of contents

Preliminary proxy statement 8.21.07

Table of contents

Revised preliminary proxy statement 9.24.07

Table of contents

Revised preliminary proxy statement 10.29.07

Table of contents

Revised preliminary proxy statement 11.01.07

Table of contents

Revised preliminary proxy statement 11.02.07

Table of contents

Deal Protection

No shop covenant

45-day no shop period

Merger agreement 7.4

Proxy statement disclosure

Break-up fee

$100mm, plus out-of-pocket expenses
Agreement 7.2

Proxy statement disclosure

Fairness Opinion

Lazard Freres fairness opinion

Proxy statement disclosure

Tax Matters

Disclosure

Proxy statement disclosure

Regulatory Approvals

HSR Act

Merger agreement 9.2

Proxy statement disclosure

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