Alliance Gaming Announces $14 Million Exchange of Debt for Stock With Key Employees
June 29 2005 - 6:00PM
PR Newswire (US)
Alliance Gaming Announces $14 Million Exchange of Debt for Stock
With Key Employees Robert Luciano, Chief Technology Officer, and
Others Increase Share Holdings LAS VEGAS, June 29
/PRNewswire-FirstCall/ -- Alliance Gaming Corp. (NYSE:AGI)
announced today that it has retired $14 million of subordinated
debt owed to certain employees in connection with the acquisition
of Sierra Design Group ("SDG"), by issuing approximately 1 million
shares of common stock, pursuant to the terms of the debt
agreement. This will result in a reduction of the Company's
reported total debt as of June 30, 2005 to approximately $335
million. The transaction is not expected to be dilutive to 2006
earnings. "This transaction has multiple benefits for the Company,"
said Richard Haddrill, CEO of Alliance Gaming. "We are pleased that
Bob Luciano and other members of our management team have
significantly increased their share ownership in the Company;
furthermore, our debt and interest costs will decrease and our
leverage ratio will improve." Robert Luciano, the Company's Chief
Technology Officer and founder of SDG, received approximately
882,000 of the common shares issued, which increased his holdings
to approximately 1.4 million shares. "I am pleased to have the
opportunity to increase my holdings in the company," Luciano said.
"I am also excited about the various new product initiatives that
are underway throughout the Bally Gaming and Systems business
unit." The shares were issued in a private placement and the
Company agreed to register the shares under the federal securities
laws for resale from time to time on a shelf registration statement
as soon as practicable following the filing of the Company's Form
10-K for the fiscal year ending June 30, 2005. Alliance Gaming is a
diversified gaming company with headquarters in Las Vegas. The
Company is engaged in the design, manufacture, distribution and
operation of advanced gaming devices and systems worldwide, and
owns and operates the Rainbow Casino in Vicksburg, Miss. Additional
information about the Company can be found at
http://www.alliancegaming.com/. This news release may contain
"forward-looking" statements within the meaning of the Securities
Act of 1933, as amended, and is subject to the safe harbor created
thereby. Such information involves important risks and
uncertainties that could significantly affect the results in the
future and, accordingly, such results may differ from those
expressed in any forward- looking statements. Future operating
results may be adversely affected as a result of a number of risks
that are detailed from time to time in the company's filings with
the Securities and Exchange Commission. Investor and Media Contact:
Steven Des Champs Alliance Gaming (702) 270-7600 DATASOURCE:
Alliance Gaming Corp. CONTACT: Investors and Media, Steven Des
Champs of Alliance Gaming, +1-702-270-7600 Web site:
http://www.alliancegaming.com/
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