IGT invests in Progressive Gaming; picks up technology

Aug 5, 2008 7:03 PM

Industry Insider by Ray Poirier | International Game Technology (IGT), an industry leader in the development of server-based gaming, has agreed to invest $15 million in Progressive Gaming International Corporation (PGIC).

The investment, expected to close on Aug. 15, will take the form of a 7% convertible note and warrants for common stock. The arrangement will also result in the two companies expanding their strategic technology alliance which was established earlier this year to address server-based gaming opportunities.

Also on the financial front, PGIC has arranged a new credit facility with Private Equity Management Croup Inc. (PEM) for an initial borrowing of $18 million and an additional $9.5 million in future borrowing capacity.

Progressive Gaming said it will use the proceeds of its two financial arrangements to retire the remaining $30 million of its 11.875% senior secured notes due on Aug. 15.

Under the expanded alliance with IGT, Progressive Gaming said it will transfer its Casinolink Jackpot Station technology to IGT which is expected to integrate that technology into its portfolio of games.