Stock Offering to Raise $79.1 million for Penn National

Penn National Gaming's public offering of 4 million shares will sell for $30.50 per share, the company announced today. The offering, which is 500,000 shares larger than initially announced, is 25% of the Pennsylvania racing and gaming company's outstanding stock as of Feb. 8.

Of the shares, 2.75 million are offered by the company and 1.25 million by the Carlino Family Trust.

The company said it expects to use the net proceeds from the offering, about $79.1 million, to repay debt. Penn National said it would not receive any of the proceeds for the sale of shares by the Carlino Family Trust.

Merrill Lynch and Bear Stearns were the joint managers of the offering. The company has granted the underwriters a 30-day option to buy up to 600,000 additional shares to cover any over-allotments.

Penn National had 15.47 million shares outstanding as of Feb. 8, according to Standard & Poor's MarketScope. Shares of Penn National closed on Wednesday at $31.75 on Nasdaq.