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Buyers of Penn National pony up $1.25 billion

Nov 4, 2008 5:02 PM

by Ray Poirier | As part of the breakup agreement that ended the acquisition of Penn National Gaming Inc. (PENN) by two private equity companies, the buyers agreed to pony up $1.25 billion for 12,500 shares of preferred stock.

Initially, Fortress Investment Group LLC and Centerbridge Partners L.P., gave the company $500 million as payment of the shares, placing the remaining $775 million in an escrow account.

That escrow money has now been turned over to the company.

Also as part of the agreement, Wesley Ederis, chairman and CEO of Fortress Investment Group, has joined the board of directors of Penn National Gaming, thus increasing the size of the board to seven members.