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Howard Stutz
 

Progressive IPO brings $47 million

20 November 2007

LAS VEGAS, Nevada -- Progressive Gaming International Corp. said Monday it raised $47 million in a public offering of its common stock. The Las Vegas-based company plans to use the proceeds to pay down debt and settle legal bills associated with the company's recently settled federal antitrust lawsuit.

Progressive Gaming, which sold its table games division this year for $30 million to concentrate on providing technology software and management systems to casinos, put up 20 million shares of its common stock last week for $2.50 a share on the Nasdaq National Market.

In August, Progressive said an unnamed investor infused the company with $31 million by purchasing 7 million shares of the company.

Progressive said Monday's announcement allowed the company to retire one $10 million note and pay about $15 million of its $45 million in outstanding senior secured notes.

Progressive didn't say how much the legal fees were. Two weeks ago, the company agreed to pay table game developer Derek Webb $20 million plus his legal fees rather than appeal a verdict reached in February by a federal jury in Mississippi. The company could have been liable for more than $39 million.

Following the payments, Progressive said, it will have more than $20 million in cash and debt of less than $10 million. The debt amount is the lowest level in the past 10 years.

In a statement, Progressive Chief Financial Officer Heather Rollo said her company could be able address the remaining debt next year.

Shares of Progressive closed Monday at $2.55, down 10 cents, or 3.77 percent.