CEO David Ross departs
In a statement last month, Affinity Gaming, which operates 11 casinos in four states including four in Nevada, has reached an agreement with its lenders over a looming debt default.
According to the Las Vegas Review-Journal, Affinity, which has $382.7 million in long-term debt, said it has received the “full support” of lenders in resolving its credit agreements. The company also has restructured its board of directors to settle a lawsuit by its largest shareholder, Z Capital Partners of Illinois.
Affinity’s board will have seven directors including two appointed by Z Capital. The company will also be in the market for a new CEO. David Ross left at the end of July.
Z Capital owns 33.7 percent of Affinity. Connecticut-based investment advisor Silver Point owns 25.1 percent of the company. Affinity also has publicly traded debt. Z Capital CEO James Zenni said the deal “is in the best interests of Affinity and all stakeholders, as the company’s two largest shareholders are now actively involved with the board.”
In July, the company disclosed its debt problems in a filing with the Securities and Exchange Commission. The SEC filing caused Moody’s Investor Services to give Affinity a negative rating outlook on the company’s debt. In a statement, Moody’s gaming analyst Keith Foley said the downgrade reflected Affinity’s “steady decline in earnings and corresponding rise in leverage.”
Affinity has casinos in Colorado, Missouri and Iowa, as well as the off-Strip Silver Sevens and three Primm resorts.
