Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!
Howard Stutz Archives
More Strategy Experts

Gaming Guru

Howard Stutz
 

Affinity Gaming to restructure board of directors

29 July 2014

By Howard Stutz
LAS VEGAS -- Casino operator Affinity Gaming will restructure the Las Vegas-based company’s board of directors and has resolved any default issues surrounding its debt.

In a statement Monday, Affinity — which operates 11 casinos in four states including the off-Strip Silver Sevens Hotel & Casino and the three Primm resorts — said the company reached agreement with its lenders over a possible default on a portion of its $382.7 million in long-term debt.

Affinity said it received “full support” of its lenders in fixing the company’s credit agreements.

Meanwhile, Affinity said the changes to the board would resolve a lawsuit brought against the company by its largest shareholder, Z Capital Partners of Illinois.

Under the terms of the agreement, Affinity’s board will have seven directors: two appointed by Z Capital, four directors, including two independent directors, designated by shareholder Silver Point Capital and other shareholders, and the company’s CEO.

Affinity is seeking a new CEO after David Ross announced earlier this year he would leave the position at the end of this month.

Z Capital CEO James Zenni said settlement with the board’s lenders and bondholders “underscores the company’s ongoing positive development.”

The agreement ended Z Capital’s dispute with the company and its previous board concerning corporate governance. Z Capital was also seeking direct involvement in setting Affinity’s strategic direction.

Z Capital owns 33.7 percent of Affinity and Silver Point, which is located in Connecticut, owns 25.1 percent of the company. Affinity has publicly traded debt.

“We believe this mutually agreeable decision is in the best interests of Affinity and all stakeholders, as the company’s two largest shareholders are now actively involved with the board,” Zenni said.

Affinity has casinos in Nevada, Colorado, Missouri and Iowa. The company revealed its debt issues in a filing with the Securities and Exchange Commission earlier this month.

The SEC filing caused Moody’s Investor Services to give Affinity a negative rating outlook on the company’s debt. In a statement, Moody’s gaming analyst Keith Foley said the downgrade reflected Affinity’s “steady decline in earnings and corresponding rise in leverage.”

Analysts said Affinity has seen property-level earnings declines in its operating segments.

Affinity Chairman Rich Parisi, who is a senior analyst for Silver Point, said the new agreement with the company’s lenders strengthened the company’s financial position.

“The resolution of the litigation and the increased direct involvement of the company’s largest shareholders will allow Affinity to focus on growth and value creation,” Parisi said.

Copyright GamingWire. All rights reserved.

 

Online poker, World Cup bets highlight gaming jump

28 July 2014
LAS VEGAS -- How nice was June for Nevada casinos? Online poker revenue cracked the $1 million mark for the first time since the results have been publicly reported. Wagering on World Cup soccer accounted for the state’s highest-ever month in the “other sports” category of sports wagering, which included a 116.3 percent in increase in revenue. ... (read more)
 

Tough sell: Official markets Atlantic City

28 July 2014
Imagine the problems in trying to market Atlantic City to the world. One casino closed in January. Three of the remaining 11 resorts could be shuttered by September. Atlantic City gaming revenue fell to $2.8 billion in 2013, the Boardwalk’s lowest total since 1989. Almost daily, headlines concerning the ... (read more)
 

Dotty's taverns are simply complex

28 July 2014
LAS VEGAS -- The 160,000-square-foot North Las Vegas warehouse and headquarters of Nevada Restaurant Services, Inc. — parent company of the Dotty’s chain of taverns — is a cross between Costco, Home Depot, a slot machine manufacturing plant and a direct-mail house. Everything making up a Dotty’s — think a grandmother’s house with gambling devices — sits in the warehouse. ... (read more)

Next 10 Articles >

  • Featured Articles

European online chief: Shuffle up and deal PokerStars in

The chief executive of European online gaming giant 888 Holdings said Wednesday that rival PokerStars should be allowed to operate in the United States now that the company is being sold for $4.9 billion to a Canadian Internet wagering firm.The comments by 888 CEO Brian Mattingley differ dramatically from ... (read more)
 

Gaming Commission grants license to start-up gaming equipment company

Gamblit Gaming, a start-up gaming equipment company that plans to combine traditional slot machines with entertainment-style video games, was granted a license Thursday in Las Vegas by the Nevada Gaming Commission.The Glendale, Calif.-based company is a subsidiary of Hard 8 Games, which is owned by American ... (read more)
 

Caesars extends offer to purchase $791.8 million in long-term debt

Caesars Entertainment Corp., extended by more than a week an offer for investors to purchase $791.8 million in the company’s long-term debt.The casino operator had previously extended the offer to end Monday. The offer now expires June 27.The bond purchases are part of the company’s effort to restructure a ... (read more)
 

SLS preparing countdown to Aug. 23 grand opening

The countdown has begun.Operators of the SLS Las Vegas Hotel Casino said the $415 million hotel-casino will open at midnight Aug. 23. To herald the opening date, a countdown will begin Tuesday morning on the north Strip resort’s new marquee.The 1,600-room property — a renovation of the Rat Pack-era Sahara — ... (read more)
 

Slot machine maker IGT says in statement company is exploring 'strategic alternatives'

Slot machine giant International Game Technology all but confirmed the company is up for sale Monday, saying in a statement it was “currently” exploring “a broad range of strategic alternatives.”In a one-paragraph comment, IGT said its board of directors and senior management are “currently engaged” in ... (read more)