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Company completes stock offering, reduces debt

Friday, Oct. 24, 2003 | 11:05 a.m.

Slot maker Mikohn Gaming Corp. has completed its previously announced sale of 8.4 million shares of common stock at a price of $5.34 per share and warrants to acquire an additional 2.1 million shares at an exercise price of about $5.88 per share.

Proceeds from the purchase will be used to repurchase and retire $40 million of the company's bonds at 11.88 percent interest due August 2008. The transaction will reduce the company's interest payments by about $4.8 million to about $7.7 million per year.

The transaction, which will reduce company debt to about $65.7 million, is part of a strategy to turn around the company.

Mikohn also will take two one-time charges of $1.6 million related to the sale.

"With the improved cash flow and reduced leverage resulting from this transaction, Mikohn can continue its focus on strategic and growth initiatives," Mikohn Chief Executive Officer Russ McMeekin said in a statement.

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