Bally Technologies, Inc. Announces New $300 Million Share Repurchase Authorization & $150 Million Accelerated Share Buyback; ...
April 24 2013 - 4:06PM
Business Wire
Bally Technologies, Inc. (NYSE: BYI)
- AMENDS CREDIT FACILITY TERMS TO
PROVIDE INCREMENTAL FINANCIAL FLEXIBILITY
- EXTENDS MATURITY OF CREDIT FACILITY
BY TWO YEARS TO APRIL 2018
Bally Technologies, Inc. (NYSE: BYI), a leader in slots, video
machines, casino-management, interactive applications, and
networked and server-based systems for the global gaming industry,
today announced the Company’s Board of Directors authorized a new
$300 million share repurchase program, replacing the existing $150
million program under which the Company had purchased approximately
$63 million of common stock. The Company is entering into an
accelerated share buyback agreement with JP Morgan Chase Bank, NA
on April 24, 2013 under which it will purchase up to $150 million
worth of stock under the new share repurchase program.
The Company also announced it has increased the existing credit
facility by $400 million, to a total of $1.1 billion, and extended
the maturity of the facility to April 2018.
“We are extremely pleased with the terms of our amended credit
facility and with the additional capital raised,” said the
Company’s Chief Financial Officer Neil Davidson. “Our increased
revolver capacity and modest leverage provide Bally with ample
liquidity to fund additional share repurchases and potential
acquisitions, as well as make further investments in our business.
After funding the accelerated share buyback, we will have undrawn
revolver capacity of approximately $435 million.”
Key aspects of the amendment are as follows:
- Improved leveraged-based pricing grid
whereby the total leverage ratio for each applicable rate and
undrawn fee tier was increased by 0.25 turns;
- Maximum total leverage ratio to be 3.5
turns for the life of the facility;
- No limitations on restricted payments
(which includes share repurchases) provided the Company’s Maximum
Leverage Ratio is under 2.75 turns and $150 million per year if
above; and
Under the terms of the accelerated share buyback agreement, the
Company will pay JP Morgan Chase Bank, NA $150 million on or about
April 26, 2013 and will receive the initial delivery of
approximately 2.5 million shares, representing a substantial
majority of the shares expected to be repurchased over the course
of the accelerated share buyback. The total number of shares
ultimately repurchased under the agreement will be determined based
on the daily volume-weighted average share price of Bally’s common
stock during the repurchase period less a discount. The Company
will fund the accelerated share buyback with borrowings under its
revolving credit facility and excess cash on hand.
About Bally Technologies,
Inc.
With a history dating back to 1932, Las Vegas-based Bally
Technologies designs, manufactures, operates, and distributes
advanced technology-based gaming devices and systems worldwide, as
well as interactive and mobile solutions. Bally’s product line
includes reel-spinning slot machines, video slot machines,
wide-area progressives, and Class II, lottery, and central
determination games and platforms. Bally also offers an array of
casino management, slot accounting, bonusing, cashless, and
table-management solutions. Additional Company information,
including the Company’s investor presentation, can be found at
BallyTech.com. Connect with Bally on Facebook, Twitter, YouTube,
LinkedIn and Pinterest.
This news release may contain “forward-looking” statements
within the meaning of the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended, and is subject to
the safe harbors created thereby. Forward looking-statements are
subject to change and involve risks and uncertainties that could
significantly affect future results, including those risks detailed
from time to time in the Company’s filings with the Securities and
Exchange Commission. Although the Company believes any expectations
expressed in any forward-looking statements are reasonable, future
results may differ materially from those expressed in any
forward-looking statements. The Company undertakes no obligation to
update the information in this press release except as required by
law and represents that the information speaks only as of today’s
date.
– BALLY TECHNOLOGIES, INC. –