Wednesday, May 21, 2008

Buyout of Penn National May Involve Revised Terms

Another private equity deal is feeling pressure this week, as the firms buying Penn National Gaming for $6.1 billion begin to jostle with the banks over the terms for the leveraged buyout, people briefed on the matter said on Tuesday.

Penn National, which is being acquired by the Fortress Investment Group and Centerbridge Partners, is one of the few remaining deals from the private equity boom that ended last year.

The buyers and their lenders, led by Deutsche Bank and Wachovia, are working to negotiate the final terms of the financing commitments, these people said. The banks appear to be balking at the originally agreed-upon lending terms at the same time that the buyers are considering ways to cut the deal’s price, these people said.

No comments: