Allows Poydras to Proceed with its Acquisition of the Integrity Companies and Provides Additional Flexibility to Pursue Growth Strategy
MILL VALLEY, CA, July 2, 2015 /CNW/ - POYDRAS GAMING FINANCE CORP. (TSX-V: PYD) ("Poydras" or the "Company") is pleased to announce that over 80% of the holders of its 11% Convertible Debentures (the "Debentures"), well above the required majority of 66 %, have approved the Proposed Amendments to the indenture governing the Debentures. This approval enables the Company to:
- Proceed with the acquisition of the Integrity Companies, as originally announced on September 29, 2014 and as detailed in the Short Form Prospectus filed on SEDAR on June 24, 2015;
- Modify the definitions of EBITDA and Equity to adjust for the negative covenant impact of several noncash and onetime charges related to the reverse takeover transaction in May 2014;
- Clarify the definition of interest expense to exclude noncash expenses and other charges, and;
- Postpone the positive covenant tests until Poydras has completed the acquisition of Integrity and the rollout of the Tonkawa placement agreement, allowing the Company to realize the benefits from the transactions and allowing the growth strategy to develop.
"The pending acquisition of the Integrity Companies, in addition to our agreement with the Tonkawa Tribe of Indians of Oklahoma, have provided us with a diversified financial base and a strong platform for growth in 2015 and beyond," said Peter Macy, Chief Executive Officer of Poydras. "The increased financial flexibility provided by the Debentureholders' approval has opened up access to additional capital needed to fund our growth."
For additional information please see the SEDAR website at www.sedar.com.
About Poydras Gaming Finance Corp.:
Poydras Gaming is focused on leasing and financing gaming machines (such as slot machines) and related capital expenditures for existing casinos, new casino developments and gaming machine suppliers in the United States. It owns and finances slot machines including long-term lease contracts across six casinos in Oklahoma and a financing agreement with a gaming machine supplier based out of California. Additional information about the Company can be found on the SEDAR website at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Poydras Gaming Finance Corp.