SEARCH NEWS:

 

Mikohn Completes $45 Million Private Placement of Common Stock

LAS VEGAS -- (Press Release) -- Mikohn Gaming Corporation (NASDAQ:MIKN) today announced that it has completed its previously announced sale of 8.4 million shares of its Common Stock at a price of $5.34125 per share and warrants to acquire an additional 2.1 million shares at an exercise price of approximately $5.875375 per share. Proceeds from the transaction will be used to repurchase and retire $40.0 million of the Company's 11.875% Senior Secured Notes due August 2008. As a result of this transaction, the Company's annual cash interest payments will decrease by approximately $4.8 million to approximately $7.7 million per year.

As a result of the above transaction, the Company will take a charge in its calendar fourth quarter of approximately $1.6 million for the premium to be paid on the bond repurchase, and an additional charge of approximately $1.6 million for the write-off of the unamortized portion of the bond discount related to the $40.0 million to be repurchased.

"The completion of this transaction reduces the indebtedness of Mikohn to approximately $65.7 million from approximately $105.7 million," commented Russ McMeekin, President and Chief Executive Officer. "With the improved cash flow and reduced leverage resulting from this transaction, Mikohn can continue its focus on strategic and growth initiatives."

The shares have not been registered with the Securities and Exchange Commission (the "SEC") or under any state securities laws and may not be resold in the United States absent such registration or an applicable exemption therefrom. The Company has agreed to register the shares for resale with the SEC.

< Gaming News