Exhibit 10.4

 

AMENDMENT NO. 1 TO
CREDIT AGREEMENT

 

This AMENDMENT NO. 1 (this “Amendment”) dated as of June 9, 2004, to the CREDIT
AGREEMENT dated as of March 3, 2003, as amended and restated as of December 5,
2003 (the “Credit Agreement”) among PENN NATIONAL GAMING, INC. as Borrower; the
Subsidiary Guarantors party hereto; the Lenders party hereto; BEAR, STEARNS &
CO. INC. and MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as original
joint lead arrangers and original joint bookrunners (in such capacities,
together with their successors in such capacities, “Original Lead Arrangers”);
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as syndication agent (in
such capacity, together with its successors in such capacity, “Syndication
Agent”); BEAR, STEARNS & CO. INC., as sole lead arranger and sole bookrunner in
connection with the Term D Loan Facility and the amendment and restatement of
the original credit agreement (the “New Lead Arranger”; together with the
Original Lead Arrangers, the “Lead Arrangers”); BEAR STEARNS CORPORATE LENDING
INC., as swingline lender (“Swingline Lender”), as administrative agent (in such
capacity, together with its successors in such capacity, “Administrative Agent”)
and as collateral agent (in such capacity, together with its successors in such
capacity, “Collateral Agent”); and SOCIETE GENERALE and CREDIT LYONNAIS NEW YORK
BRANCH, as joint documentation agents (in such capacities, together with their
successors in such capacities, “Documentation Agents”).  Capitalized terms used
and not otherwise defined herein shall have the meanings assigned to them in the
Credit Agreement.

 

R E C I T A L S :

 

WHEREAS, Borrower requests that certain modifications be made to Sections 2.09,
10.04 and 10.08 of the Credit Agreement.

 

WHEREAS, pursuant to Section 13.04 of the Credit Agreement, the consent of the
Majority Lenders is necessary to effect this Amendment.

 

NOW, THEREFORE, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

 

A G R E E M E N T :

 

SECTION 1.                                AMENDMENTS.

 

(A)                                  SECTION 1.01 OF THE CREDIT AGREEMENT SHALL
BE AMENDED TO INCLUDE THE FOLLOWING DEFINITION:

 

“Bangor Historic Track Facility” shall mean the Gaming Facility known as “Bangor
Raceway” located in Bangor, Maine.

 

(B)                                 THE FIRST SENTENCE OF SECTION 2.09(B)(III)
OF THE CREDIT AGREEMENT IS AMENDED TO READ IN ITS ENTIRETY AS FOLLOWS:

 

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“In addition to the foregoing, and provided that the Consolidated Senior
Leverage Ratio is less than 2.25 to 1.00, Borrower shall have the right to elect
to make a pro rata offer to prepay the Term D Facility Loans then outstanding
and apply any amounts not accepted for such prepayment to repurchase Permitted
Subordinated Indebtedness and/or Borrower Outstanding Bonds in accordance with
Section 10.10(v).”

 

(C)                                  SECTION 10.04(P) OF THE CREDIT AGREEMENT IS
AMENDED TO DELETE THE FOLLOWING LANGUAGE:

 

“no more than $50.0 million of which shall be from the incurrence of
Indebtedness, no more than $50.0 million of which shall be from an Equity
Issuance (exclusive of the fees and expenses incurred in connection with the
issuance of such Indebtedness or such Equity Issuance),”.

 

(D)                                 SECTION 10.08(D)(II) OF THE CREDIT AGREEMENT
IS AMENDED SO THAT CLAUSE (A) THEREOF READS AS FOLLOWS:

 

“(A) (x) $90.0 million at the Charles Town Facility less Expansion Capital
Expenditures totaling $25.9 million previously incurred since March 3, 2003;
provided, however, that any Expansion Capital Expenditure at the Charles Town
Facility shall not extend past December 31, 2006 and (y) $75.0 million at the
Bangor Historic Track Facility provided, however, that any Expansion Capital
Expenditure at the Bangor Historic Track Facility shall not extend past
December 31, 2005,”

 

(E)                                  SECTION 10.10(A)(V) OF THE CREDIT AGREEMENT
IS AMENDED TO READ IN ITS ENTIRETY AS FOLLOWS:

 

“so long as the Consolidated Senior Leverage Ratio is less than 2.25 to 1.00,
payment of or repurchase, redemption, retirement, acquisition or cancellation of
Borrower’s and its Restricted Subsidiaries’ Permitted Subordinated Indebtedness
and/or Borrower Outstanding Bonds with all or any portion of the amounts by
which Borrower offered to prepay the Term D Facility Loans then outstanding in
accordance with Section 2.09(b)(iii) but that were declined in accordance with
such Section 2.09(b)(iii);”

 

SECTION 2.                                REPRESENTATIONS AND WARRANTIES.  THE
CREDIT PARTIES HEREBY AFFIRM AND RESTATE THE REPRESENTATIONS AND WARRANTIES MADE
BY IT IN THE CREDIT AGREEMENT AND CONFIRM THAT ALL SUCH REPRESENTATIONS AND
WARRANTIES ARE TRUE AND CORRECT IN ALL MATERIAL RESPECTS AS OF THE DATE HEREOF,
AFTER GIVING EFFECT TO THE EFFECTIVENESS OF THIS AMENDMENT, EXCEPT TO THE EXTENT
THAT ANY SUCH REPRESENTATION AND WARRANTY SPECIFICALLY RELATES TO AN EARLIER
DATE.

 

SECTION 3.                                MISCELLANEOUS.

 

(A)                                  THIS AMENDMENT RELATES ONLY TO THE SPECIFIC
MATTERS COVERED HEREIN AND SHALL NOT CONSTITUTE A CONSENT TO OR WAIVER OR
MODIFICATION OF ANY OTHER PROVISION, TERM OR CONDITION OF THE CREDIT AGREEMENT.

 

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(B)                                 ALL TERMS, PROVISIONS, COVENANTS,
REPRESENTATIONS, WARRANTIES, AGREEMENTS AND CONDITIONS CONTAINED IN THE CREDIT
AGREEMENT SHALL REMAIN IN FULL FORCE AND EFFECT EXCEPT AS EXPRESSLY PROVIDED
HEREIN.

 

(C)                                  THIS AMENDMENT SHALL BECOME EFFECTIVE WHEN,
AND ONLY WHEN (I) ADMINISTRATIVE AGENT SHALL HAVE RECEIVED COUNTERPARTS OF THIS
AMENDMENT EXECUTED BY BORROWER AND THE SUBSIDIARY GUARANTORS AND A NUMBER OF
LENDERS SUFFICIENT TO CONSTITUTE THE MAJORITY LENDERS; AND (II) AND BORROWER HAS
PAID ALL REASONABLE COSTS AND EXPENSES OF ADMINISTRATIVE AGENT IN CONNECTION
WITH THE PREPARATION, EXECUTION AND DELIVERY OF THIS AMENDMENT AND THE OTHER
INSTRUMENTS AND DOCUMENTS TO BE DELIVERED HEREUNDER, IF ANY (INCLUDING, WITHOUT
LIMITATION, THE REASONABLE FEES AND EXPENSES OF CAHILL GORDON & REINDEL LLP) IN
ACCORDANCE WITH THE TERMS OF SECTION 13.03 OF THE CREDIT AGREEMENT.

 

(D)                                 FROM AND AFTER THE EFFECTIVENESS OF THIS
AMENDMENT, EACH REFERENCE IN THE CREDIT AGREEMENT TO “THIS AGREEMENT,” “HEREOF,”
“HEREIN,” “HEREBY” OR WORDS OF LIKE IMPORT SHALL BE DEEMED TO BE A REFERENCE TO
THE CREDIT AGREEMENT AS AMENDED BY THIS AMENDMENT.

 

(E)                                  THIS AMENDMENT MAY BE EXECUTED IN ANY
NUMBER OF COUNTERPARTS AND BY DIFFERENT PARTIES HERETO IN SEPARATE COUNTERPARTS,
EACH OF WHICH WHEN SO EXECUTED AND DELIVERED SHALL BE DEEMED AN ORIGINAL, BUT
ALL SUCH COUNTERPARTS TOGETHER SHALL CONSTITUTE BUT ONE AND THE SAME INSTRUMENT.

 

(F)                                    THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO PRINCIPLES OF CONFLICT OF LAWS.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered as of the date first above written.

 

 

PENN NATIONAL GAMING, INC.

 

 

 

 

 

By:

/s/ William J. Clifford

 

 

Name: William J. Clifford

 

 

Title: Chief Financial Officer and Senior Vice
President, Finance

 

 

 

 

 

 

Address for Notices:

 

 

 

Penn National Gaming, Inc.

 

825 Berkshire Boulevard

 

Suite 200

 

Wyomissing, Pennsylvania  19610

 

 

 

Contact person:  Robert S. Ippolito

 

Telecopier No.:  (610) 376-2842

 

Telephone No.:  (610) 378-8384

 

 

 

 

 

SUBSIDIARY GUARANTORS:

 

 

 

 

 

BACKSIDE, INC.

 

 

 

 

 

By:

/s/ Robert S. Ippolito

 

 

Name: Robert S. Ippolito

 

 

Title: Vice President

 

 

 

 

 

 

HOLLYWOOD CASINO-AURORA, INC.

 

 

 

 

 

By:

/s/ Kevin DeSanctis

 

 

Name: Kevin DeSanctis

 

 

Title: President

 

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BANGOR AQUISITION CORP.,

 

 

 

 

 

By:

/s/ Kevin DeSanctis

 

 

Name: Kevin DeSanctis

 

 

Title: President

 

 

 

 

 

BANGOR HISTORIC TRACK, INC.,

 

 

 

 

 

By:

/s/ Kevin DeSanctis

 

 

Name: Kevin DeSanctis

 

 

Title: President

 

 

 

 

 

DEL’S-SEAWAY SHRIMP & OYSTER
COMPANY, INC.,

 

 

 

 

 

By:

/s/ Kevin DeSanctis

 

 

Name: Kevin DeSanctis

 

 

Title: President

 

 

 

 

 

PNGI CHARLES TOWN GAMING LIMITED
LIABILITY COMPANY

 

 

 

 

 

By:

PENN NATIONAL GAMING OF WEST VIRGINIA, INC.,

 

 

Managing Member

 

 

 

 

 

By:

/s/ Robert S. Ippolito

 

 

 

 

Name:  Robert S. Ippolito

 

 

 

Title: Secretary and Treasurer

 

 

 

 

 

PNGI CHARLES TOWN FOOD & BEVERAGE LIMITED LIABILITY COMPANY

 

 

 

 

 

By:

/s Richard Moore

 

 

Name: Richard Moore

 

 

Title: Manager

 

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PENN NATIONAL GSFR, LLC

 

 

 

By:

PENN NATIONAL GAMING, INC.,
Sole Member and Manager

 

 

 

 

 

By:

/s/ Robert S. Ippolito

 

 

 

Name: Robert S. Ippolito

 

 

Title: Vice President, Secretary and

 

 

Treasurer

 

 

 

 

 

 

PENN NATIONAL SPEEDWAY, INC.

 

 

 

 

 

By:

/s/ Richard J. Carlino

 

 

 

Name: Richard J. Carlino

 

 

Title: Chief Executive Officer

 

 

 

 

 

W-B DOWNS, INC.

 

 

 

 

 

By:

/s/ William J. Clifford

 

 

 

Name: William J. Clifford

 

 

Title: President

 

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WILKES BARRE DOWNS, INC.

 

 

 

 

 

By:

/s/ William J. Clifford

 

 

 

Name: William J. Clifford

 

 

Title: President

 

 

 

 

 

By:

/S/ Robert S. Ippolito

 

 

 

Name: Robert S. Ippolito

 

 

Title: Treasurer

 

 

 

On behalf of the Subsidiary Guarantors listed below:

 

 

 

 

 

BSL, INC.

 

BTN, INC.

 

CHC CASINOS CORP.

 

CRC HOLDINGS, INC.

 

THE DOWNS RACING, INC.

 

EBETUSA.COM, INC.

 

HOLLYWOOD CASINO CORPORATION

 

HOLLYWOOD MANAGEMENT, INC.

 

HWCC DEVELOPMENT CORPORATION

 

HWCC-HOLDINGS, INC.

 

HWCC-GOLF COURSE PARTNERS, INC.

 

HWCC-TRANSPORTATION, INC.

 

HWCC-TUNICA, INC.

 

LOUISIANA CASINO CRUISES, INC.

 

MILL CREEK LAND, INC.

 

MOUNTAINVIEW THOROUGHBRED
RACING ASSOCIATION

 

NORTHEAST CONCESSIONS, INC.

 

PNGI POCONO, INC.

 

PENN BULLPEN, INC.

 

PENN BULLWHACKERS, INC.

 

PENN MILLSITE, INC.

 

PENN NATIONAL GAMING OF
WEST VIRGINIA, INC.

 

PENN NATIONAL HOLDING COMPANY

 

PENN SILVER HAWK, INC.

 

PENNSYLVANIA NATIONAL TURF
CLUB, INC.

 

STERLING AVIATION, INC.

 

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BEAR, STEARNS & CO. INC.,

 

 

as Original Joint Lead Arranger and Original Joint
Bookrunner

 

 

 

 

 

 

By:

/s/ Keith C. Barnish

 

 

 

Name:  Keith C. Barnish

 

 

Title:  Senior Managing Director

 

 

 

 

 

 

BEAR, STEARNS & CO. INC.,

 

 

as Sole Lead Arranger and Sole Bookrunner for the
Term D Loan Facility and the Amendment and
Restatement

 

 

 

 

 

By:

/s/ Keith C. Barnish

 

 

 

Name:  Keith C. Barnish

 

 

Title:  Senior Managing Director

 

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MERRILL LYNCH, PIERCE, FENNER & SMITH

 

INCORPORATED,

 

 

 

as Original Joint Lead Arranger, Original Joint
Bookrunner and Syndication Agent

 

 

 

 

 

 

By:

/s/ Michael E. O’Brien

 

 

 

Name:  Michael E. O’Brien

 

 

Title:  Director

 

 

 

 

 

 

 

 

Address for Notices:

 

 

 

 

 

Merrill Lynch, Pierce Fenner & Smith

 

 

Incorporated

 

 

 

4 World Financial Center

 

 

250 Vesey Street

 

 

New York, New York  10080

 

 

Attention:  Michael O’Brien

 

 

 

 

 

Telecopier No.:  (212) 449-4877

 

 

Telephone No.:  (212) 449-0948

 

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BEAR STEARNS CORPORATE LENDING INC.,

 

 

as Administrative Agent, Swingline Lender,
and Collateral Agent

 

 

 

 

 

By:

/s/ Victor Bulzacchelli

 

 

 

Name:  Victor Bulzacchelli

 

 

Title:  Vice President

 

 

 

 

Address for Notices:

 

 

 

 

 

Bear Stearns Corporate Lending Inc.

 

 

383 Madison Avenue

 

 

New York, New York 10179

 

 

Attention:  Stephen O’Keefe

 

 

 

 

 

Telecopier No.:  (212) 272-9184

 

 

Telephone No.:  (212) 272-9430

 

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SOCIETE GENERALE,

 

as Joint Documentation Agent

 

 

 

 

 

By:

/s/ Carina T. Huynh

 

 

 

Name:  Carina T. Huynh

 

 

Title:  Vice President

 

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CALYON NEW  YORK BRANCH,

 

as Joint Documentation Agent

 

 

 

 

 

By:

/s/ Attila Coach

 

 

 

Name:  Attila Coach

 

 

Title:  Managing Director

 

 

 

 

 

 

 

By:

/s/ Frank Herrera

 

 

 

Name:  F. Frank Herrera

 

 

Title:  Director

 

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