GAMMA OBTAINS $50 MILLION FINANCING PACKAGE
GAMMA OBTAINS $50 MILLION FINANCING PACKAGE BALLERICA, Mass., May 6 /PRNewswire/ -- Gamma International, Ltd.
(NASDAQ: GAMMC) today announced that it has signed an agreement which will provide the company with a $50 million credit line to finance anticipated projects in Gamma's full-service gaming systems business.
An agreement with The Bennett Funding Group, Inc. will provide up to seven-year term debt financing on projects approved on a case-by-case basis. In addition, the Syracuse, N.Y., commercial financing company and its affiliates will invest over $4 million in Gamma equity, including conversion of $1.1 million of existing debt, and provide a $1 million working capital line. Bennett and its affiliates will receive common and preferred stock equivalent to 2,986,667 shares of common stock. Planned initial projects for financing include expansion of the Gamma keno lottery network in Omaha, Neb., which the licensee, Big Red Keno Ltd., has been operating since late last year; 600 Cardco video lottery terminals and expansion of Gamma's Megapick(TM) bingo network on American Indian lands. Commenting on the announcements, Robert K. Stern, the company's chairman and chief executive officer, stated that, in addition to boosting the company's shareholder equity, the recent financings will enable Gamma to accelerate deployment of gaming products in its existing base of operations and compete vigorously in the broader gaming industry, particularly in response to opportunities in various rapidly emerging submarkets. "With the explosive growth in legalized gaming," Stern stated, "we foresee a multitude of first-rate opportunities for employing new technologies and innovative concepts in the gaming arena which we have been nurturing at Gamma over the past year or so. However, the implementation and exploitation of these new technologies requires substantial capital investment. The financing and advisory agreement with Bennett Funding should provide Gamma with the kind of patient but perceptive capital strength needed to optimize the company's growth and long-term profitability." Gamma, a full-service gaming systems company, includes among its directors and officers such leaders in the public gaming industry as Stern and Daniel W. Bower, founders and former chairmen of GTECH Corporation and Scientific Games, Inc., respectively. Included among Gamma's product offerings are innovative video poker, keno and other advanced technology gaming systems, including the nation's largest, high-stakes bingo games which are played simultaneously via Gamma's proprietary satellite network in independently operated bingo halls, primarily on Indian lands, located in 15 states, and the District of Columbia. Gamma's shares, warrants and units are traded on NASDAQ under the symbols GAMMC, GAMMWC AND GAMMUC, respectively. -0- 5/6/92 /CONTACT: Robert K. Stern, 401-331-5533, or Jack Saltiel, 508-670-0794, both of Gamma International; or John Swanson of Swanson Communications, 212-683-4890, for Gamma International/ (GAMMC) CO: Gamma International, Ltd. ST: Massachusetts IN: CNO SU: FNC
CK-SH -- NY006 -- 6893 05/06/92 08:30 EDT
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|Date:||May 6, 1992|
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