System supplier Progressive Gaming International Corporation announced the signing of a note and warrant purchase agreement with leading slot manufacturer International Game Technology.
The company also announced definitive agreements for a new credit facility and term loan with Private Equity Management Group Inc.
IGT agreed to purchase a new $15 million Progressive Gaming 7 percent convertible note and warrants for common stock. Progressive Gaming intends to use proceeds from the financing with
IGT and borrowings from the new credit facility with PEM to retire the remaining $30 million of its 11.875 percent senior secured notes due August 15, thereby eliminating the remaining portion of its high-yield debt.
The company and IGT also will expand their strategic relationship, established last April, to cover server-based gaming upon closing of the financing transactions.
Under the expanded alliance, Progressive Gaming will transfer its Casinolink Jackpot Station technology to IGT. It is expected to be integrated with IGT’s extensive IP portfolio, including IGT’s “sb” server-based technologies as well as future versions of the technology.
PGIC will retain a license to continue to market the standard progressive and mystery jackpot features of Casinolink to current and new customers worldwide. Additionally, over the next five years, PGIC expects to receive approximately $9 million for engineering services provided to IGT, and for the technology transfer and royalties related to Casinolink.