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PENN Entertainment, Inc. (NASDAQ:PENN), formerly known as Penn National Gaming Inc ., with a current market capitalization of $2.27 billion, announced today that it has entered into agreements to repurchase approximately $223.8 million of its 2.75% Convertible Senior Notes due in 2026. According to InvestingPro data, the company operates with a significant debt burden of $11 billion and a debt-to-equity ratio of 3.7. The transactions are set to close on June 20, 2025, with the final repurchase price to be determined during an averaging period starting Monday, June 16, 2025.
The repurchase price is expected to total around $230.9 million, assuming the company’s stock price remains at $15.61, which was the closing price on the repurchase date, and including accrued and unpaid interest. Once the transactions are completed, the remaining outstanding principal amount of the Convertible Senior Notes will be approximately $106.7 million. This debt management move comes as InvestingPro analysis shows the company’s current ratio at 0.74, indicating that short-term obligations exceed liquid assets.
HudsonWest LLC served as the exclusive financial advisor to PENN Entertainment for these transactions. The company has stated that this information, furnished to the Securities and Exchange Commission, should not be considered "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor should it be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, unless explicitly stated in such a filing.
This news comes directly from a recent SEC Form 8-K filing by PENN Entertainment, Inc., and reflects the company’s ongoing financial management strategies. The repurchase of convertible notes is a financial maneuver that companies often use to manage debt and potentially improve financial metrics. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which offers deep-dive analysis of PENN and 1,400+ other US stocks.
In other recent news, PENN Entertainment, Inc. has announced the upcoming opening of its new Hollywood Casino (EPA:CASP) Joliet on August 11, marking a significant milestone in its expansion efforts in the Chicagoland area. This launch comes nearly six months ahead of schedule and is part of a $185 million project expected to generate substantial employment in the region. Additionally, PENN has been actively involved in a proxy battle with activist investor HG Vora, which has led to contentious discussions about board nominations. The company has endorsed nominees Johnny Hartnett and Carlos Ruisanchez, with backing from proxy advisory firms like Glass Lewis (JO:LEWJ) and Institutional Shareholder Services. However, Egan-Jones Proxy Services has recommended supporting an additional nominee, William Clifford, citing governance concerns. PENN has defended its board’s actions and emphasized its commitment to regulatory compliance and shareholder value. The company remains focused on its strategic growth, leveraging partnerships and expanding its entertainment offerings across North America.
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