Penn National buys M Resort Spa Casino debt for us$ 230.5 million

Peter M. Carlino, CEO of Penn National commented, "This transaction represents a great opportunity for Penn National, M Resort, its customers and employees as we address the financial uncertainty and debt burden which has created an overhang on M Resort's operations. The M Resort is a beautiful, fresh, upscale locals and destination-oriented casino resort which provides an excellent customer experience. M Resort is located ten miles from the Las Vegas Strip with access to I-15 and in close proximity to several master-planned communities.

"M Resort is a unique, differentiated property that we expect will continue to improve its operating results even without the benefit of a rebound in the local Las Vegas economy. Longer-term, the core attributes which contributed to the growth of Las Vegas into one of the world's pre-eminent entertainment destinations including its favorable climate and low taxes, combined with Penn National's growing database of 12 million regional gaming customers, many of whom already visit Las Vegas, will further benefit M Resort and the local economy."

Opened in March 2009, the M Resort Spa Casino is situated on over 36.4 hectares on the southeast corner of Las Vegas Boulevard and St. Rose Parkway. The resort features over 8,547 sqm of gaming space including 1,900 slot machines, 64 table games, 14 poker tables and a race and sports book.

M Resort also offers 390 guest rooms and suites, nine restaurants and five destination bars, more than 5,574 sqm of meeting and conference space, a 4,700 space parking facility, a state-of-the-art spa and fitness center and a 9,290 sqm events piazza. M Resort's master plan includes the potential to develop up to 92,903 sqm of retail and a multi-screen digital movie entertainment complex.

Wachtell, Lipton, Rosen & Katz acted as legal advisor, and Miller Buckfire & Co. acted as financial advisor, to Penn National Gaming in connection with the transaction. Katten Muchin Rosenman acted as legal advisor, and The Blackstone Group acted as financial advisor, to Bank of Scotland in connection with the transaction.