Friday, Jan. 7, 2005 | 9:25 a.m.
Penn National Gaming Inc., the casino owner planning to buy Argosy Gaming Corp., will sell about $300 million of high-yield bonds this month to help fund the takeover, said a person familiar with the offering who declined to be identified.
Penn National hasn't determined a maturity for the new securities, the person said. Deutsche Bank AG is managing the transaction
Penn National, which also operates racetracks and betting facilities, agreed to pay $1.4 billion in cash for Argosy on Nov. 3. The transaction will create the third-largest U.S. operator of gambling facilities.
Penn National's debt is rated B1 by Moody's Investors Service and BB- by Standard & Poor's, four levels and three levels below investment grade. Penn National is based in Wyomissing, Pa.
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