Progressive Gaming International Corp. (Nasdaq: PGIC) supplies integrated casino and jackpot management systems for the global gaming industry. Despite a crippled economy and pinched pockets, the gaming industry hasn’t slowed down.
The company today announced it has inked a definitive agreement for a new credit facility and term loan with Private Equity Management Group Inc. (“PEM”). The agreement will allow the company to borrow $18 million, with the possibility of borrowing an additional $9.5 million if certain conditions are met.
In addition, the company signed a note and warrant purchase agreement with International Game Technology (NYSE: IGT), in which IGT agreed to purchase a new $15 million Progressive Gaming 7% convertible note and warrants for common stock.
According to the press release, Progressive Gaming will use the proceeds to retire the remaining $30 million of its nearly 12% Senior Secured Notes, which are due August 15, 2008.
Per the agreement, Progressive Gaming will transfer its Casinolink Jackpot Station (“CJS”) technology to IGT. The technology should integrate with IGT’s IP portfolio of server-based technologies and will allow for future iterations of the technology.
Also part of the deal, Progressive Gaming will receive about $9 million for engineering services provided to ITG over the next five years.
The company will continue to develop applications for IGT’s technology as well as Progressive Gaming’s Casinolink Enterprise Edition. The company anticipates significant returns from these developments over the next five years.
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