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Bally Announces Share Repurchase

Slot and system manufacturer Bally Technologies announced that the company’s board of directors has authorized a new 0 million share repurchase program, replacing the existing 0 million program under which the company had purchased approximately million of common stock.

The company entered into an accelerated share buyback agreement with JPMorgan Chase Bank, NA on April 24, 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.

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 was to pay JP Morgan Chase Bank, NA $150 million on or about April 26, 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.

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