Penn National Raises Bid for Aqueduct Racino
Penn National Gaming (PENN: 25.62 +2.85%) has been diligent in its attempts to secure the bid to develop and manage the Aqueduct Racino at Ozone Park, despite constant delays by New York Officials.
After months of unexplained and often confounding delays, the state’s leaders are expected to select a winner to develop the slot parlor by the end of the month.
Sources close to the process have reported that Penn has emerged as one of the front runners that could expect to win the 30 year contract with the state.
In an attempt to cement its position the Pennsylvania based gaming company announced last week that they were raising their bid from the initial $250 million to $300 million.
Penn’s proposed building plan includes a temporary facility with 1,000 to 2,500 Video Lottery Terminals to be operational within 8 months of signing the contract and the permanent structure with 4,500 machines to be opened one year later.
The casino operator is in a position to ensure financing for the project, with $764.4 million cash on hand and projected revenue of an additional $300 million this year. The companies net debt ratio is only $1.62 billion, three times its earnings.
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