Illinois-based investment firm Z Capital got the go-ahead from the U.S. Securities and Exchange Commission to buy up remaining shares in Affinity Gaming.
Affinity Gaming announced the regulatory decision on November 27, which gives Z Capital until December 16 to buy up most of the shares it does not already own in Affinity Gaming. Z Capital currently owns more than 40 percent of Affinity Gaming shares, making it the company’s single largest shareholder.
Affinity Gaming has about 60 shareholders in total and 20.3 million outstanding shares, and Z Capital said it has equity capital available to fund the deal.
Silver Point Capital is Affinity Gaming’s second-largest shareholder with ownership of 25.8 percent of outstanding shares. Two other shareholders own about 20 percent of Affinity Gaming stock.
If Z Capital can strike a deal to consolidate ownership of Affinity Gaming’s stock, federal regulators will need to approve the sale.
Affinity Gaming operates 11 casinos in four states, including all three casinos in Primm, Nevada, and the Silver Sevens in Las Vegas.
The potential sale of Affinity shares comes at a relatively good time for shareholders.
Independent ratings services Moody’s recently upgraded Affinity Gaming’s outlook to “stable,” citing earnings improvements and recent cost reductions, plus management and marketing moves that made the company more stable and profitable.
During the third quarter, Affinity wiped out a loss from a year earlier and realized a profit of about $2 million, as net revenues climbed by 6.1 percent to $61.5 million.
