EX-99.1
12
v125193_ex99-1.htm
GameTech
Announces Debt Refinance and Purchase of New
Headquarters
RENO,
NV
August 22, 2008 - GameTech International, Inc. ("GameTech®")
(Nasdaq: GMTC), a leading designer, developer and marketer of electronic bingo
and gaming equipment, systems, and video lottery terminals, announced today
it
has entered in to a $40 million syndicated credit facility with U.S. Bank N.
A.,
as Agent and Participating Lender, and Bank of the West, as the other
Participating Lender. The credit facility is being used by GameTech to refinance
existing corporate debt, purchase an existing 100,000 square foot facility
in
southwest Reno, Nevada, to construct additional improvements to the facility
to
enable it for use as GameTech's new Corporate Headquarters, and provide a credit
line that may be used for general corporate purposes.
On
the
topic of the debt refinancing, President and CEO Jay Meilstrup states, "Our
decision to change lenders has both community and financial benefits. We are
excited about building a relationship with two well established financial
institutions that have a major presence within Northern Nevada and the gaming
industry. Their expertise and advice in this transaction enabled us to structure
a deal that not only provides the funds to purchase the real property and
construct the improvements for our new Corporate Headquarters, but also enabled
us to refinance our existing debt and end up with an all-in effective rate
that
is over 3-percentage points less than the current cost of our existing debt
with
Ableco Finance LLC".
"Owning
our Corporate Headquarters, which will provide approximately 30,000 square
feet
of office space and over 70,000 square feet of manufacturing/warehouse space,
is
another step in implementing our strategy to expand the VLT and slot machine
business segments for GameTech. It will also increase our capacity to house
bingo equipment, thus being able to respond quickly to the growing needs of
our
domestic and international customers", stated Mr. Meilstrup.
Additional
information about the facility purchase and financing will be contained in
GameTech's Form 8-Kto be filed with the SEC.
GameTech
International, Inc. is in the business of designing, manufacturing, and
marketing computerized bingo and gaming equipment, systems, and services. Under
the GameTech® brand the company provides electronic bingo systems and equipment,
and is an innovator in advanced wireless gaming applications and devices. Under
the Summit Gaming ™ brand the Company provides video lottery terminal devices,
Class III gaming machines, and related software and content. GameTech
International, Inc. serves customers in 43 U.S. States, Canada, Japan, Mexico,
Norway, Philippines, and the United Kingdom. The company was incorporated in
1994 and is headquartered in Reno, Nevada.
Statements
in this press release that are not historical facts are intended to be
forward-looking statements subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. GameTech cautions that these
statements are qualified by important factors that could cause actual results
to
differ materially from those reflected by the forward-looking statements
contained herein. Such factors include risks associated with doing business
in a
regulated industry, our ability to retain customers and secure new customers,
risks associated with rapid technological change, and those disclosed in
documents filed by the Company with the Securities and Exchange Commission,
including the Company's most recently filed Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. GameTech does not intend, and undertakes no
obligation, to update our forward-looking statements to reflect future events
or
circumstances.
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2 of
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EX - 99 . 1 12 v125193 _ ex99 - 1 . htm GameTech Announces Debt Refinance and Purchase of New Headquarters RENO , NV August 22 , 2008 - GameTech International , Inc . ( " GameTech ® " ) ( Nasdaq : GMTC ) , a leading designer , developer and marketer of electronic bingo and gaming equipment , systems , and video lottery terminals , announced today it has entered in to a $ 40 million syndicated credit facility with U . S . Bank N . A . , as Agent and Participating Lender , and Bank of the West , as the other Participating Lender . The credit facility is being used by GameTech to refinance existing corporate debt , purchase an existing 100,000 square foot facility in southwest Reno , Nevada , to construct additional improvements to the facility to enable it for use as GameTech 's new Corporate Headquarters , and provide a credit line that may be used for general corporate purposes . On the topic of the debt refinancing , President and CEO Jay Meilstrup states , " Our decision to change lenders has both community and financial benefits . We are excited about building a relationship with two well established financial institutions that have a major presence within Northern Nevada and the gaming industry . Their expertise and advice in this transaction enabled us to structure a deal that not only provides the funds to purchase the real property and construct the improvements for our new Corporate Headquarters , but also enabled us to refinance our existing debt and end up with an all - in effective rate that is over 3 - percentage points less than the current cost of our existing debt with Ableco Finance LLC " . " Owning our Corporate Headquarters , which will provide approximately 30,000 square feet of office space and over 70,000 square feet of manufacturing / warehouse space , is another step in implementing our strategy to expand the VLT and slot machine business segments for GameTech . It will also increase our capacity to house bingo equipment , thus being able to respond quickly to the growing needs of our domestic and international customers " , stated Mr . Meilstrup . Additional information about the facility purchase and financing will be contained in GameTech 's Form 8 - Kto be filed with the SEC . GameTech International , Inc . is in the business of designing , manufacturing , and marketing computerized bingo and gaming equipment , systems , and services . Under the GameTech ® brand the company provides electronic bingo systems and equipment , and is an innovator in advanced wireless gaming applications and devices . Under the Summit Gaming ™ brand the Company provides video lottery terminal devices , Class III gaming machines , and related software and content . GameTech International , Inc . serves customers in 43 U . S . States , Canada , Japan , Mexico , Norway , Philippines , and the United Kingdom . The company was incorporated in 1994 and is headquartered in Reno , Nevada . Statements in this press release that are not historical facts are intended to be forward - looking statements subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 . GameTech cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward - looking statements contained herein . Such factors include risks associated with doing business in a regulated industry , our ability to retain customers and secure new customers , risks associated with rapid technological change , and those disclosed in documents filed by the Company with the Securities and Exchange Commission , including the Company 's most recently filed Annual Report on Form 10 - K and Quarterly Reports on Form 10 - Q . GameTech does not intend , and undertakes no obligation , to update our forward - looking statements to reflect future events or circumstances . Page 2 of 2