FIG acquisition of Penn National

Penn National Gaming, Inc. Agrees To Be Acquired By Fortress Investment Group LLC
June 15, 2007
Penn National Gaming, Inc. announced that it has entered into a definitive agreement to be acquired by certain funds managed by affiliates of Fortress Investment Group LLC and Centerbridge Partners LP in an all-cash transaction valued at approximately $8.9 billion, including the planned repayment of approximately $2.8 billion of Penn National’s outstanding debt. Under the terms of the agreement, Penn National shareholders will receive $67.00 in cash for each outstanding Penn National share. The transaction is expected to be completed in approximately twelve to sixteen months. The merger agreement does not contain a financing condition. In addition, if the merger is not consummated by June 15, 2008, the per share purchase price will be increased by $0.0149 per day.

 

Arbitrage situations available

Some of these spreads are absolutely amazing. FIG looking to buy Penn National Gaming with a $22.45 spread. I’m going to have a closer look at that one.

Target…………………….. Acquirer……………………………. Spread w/ Dividends
Navteq Corp……………… Nokia Oyj………………………………… $13.95
Nymex Holdings Inc…….. CME Group Inc…………………………… 6.53
NuCo2 Inc……………. Aurora Capital Group……………………….. 2.03
Penn National Gaming Inc. Fortress Investment ………………….. 22.45
Performance Food Group Co. Wellspring Capital, Blackstone Group 1.85
Puget Energy Inc. Macquarie Infrastructure Partners…………….. 4.09
Quintana Maritime Ltd. Excel Maritime Carriers Ltd……………….. 1.26
Restoration Hardware Inc. Catterton Partners…………………….. 0.17
Rural Cellular Corp. Verizon Wireless………………………………… 0.71
Trane Inc………….. Ingersoll-Rand Co. Ltd……………………….. 0.73