May 21, 2008 / 5:11 AM / 10 years ago

Penn National buyout may involve revised terms- NYT

May 21 (Reuters) - The firms buying casino and racetrack operator Penn National Gaming Inc (PENN.O), are jostling with banks over terms for the $6.1 billion leveraged buyout, the New York Times said on Wednesday, citing people briefed on the matter.

The buyers Fortress Investment Group FIG.N and Centerbridge Partners LP, and banks led by Deutsche Bank AG (DBKGn.DE) and Wachovia WB.N Corp, are working to negotiate the final terms of the financing commitments, the paper said, citing its sources.

The banks are reluctant to honor the originally agreed-upon terms, while the buyers are considering ways to cut the deal’s price, the paper said.

Fortress and Centerbridge agreed in June 2007 to buy Penn National for $67 a share. The company said in March the per share amount will be increased $.0149 per day if the merger is not completed by June 15.

Centerbridge, Deutsche Bank and Wachovia did not immediately return calls seeking comment. Fortress could not immediately be reached for comment.

Several buyout deals, such as those of student lender SLM Corp SLM.N, better known as Sallie Mae, and equipment rental company United Rentals Inc (URI.N), collapsed when funding became more difficult and costly to secure.

Shares of Penn National closed at $43.43 Tuesday on the Nasdaq. (Reporting by Ajay Kamalakaran in Bangalore; Editing by Tomasz Janowski)

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