![]() ![]() ![]() The transaction would have required regulatory approval. The next two largest shareholders combined own another 20 percent of Affinity Gaming. ![]() Silver Point Capital, a Connecticut investment firm, is Affinity’s second-largest shareholder with a 25.8 percent ownership stake. The investment fund said it would finance the transaction through “equity capital provided by funds managed and advised by Z Capital, as well as debt financing from sources with which Z Capital has a long-standing relationship.” In November, Z Capital offered $15 per share for the all outstanding shares and twice extended exclusivity agreements with the board.Īffinity Gaming has roughly 60 shareholders and more than 20.3 million outstanding shares, including the stake owned by Z Capital. In Nevada, Affinity has five casinos, including the off-Strip Silver Sevens and three Primm resorts. Zenni, who is a member of the Affinity board, has made several attempts in the past few years to acquire the entire company. Affinity is not publicly traded but has $382.7 million in publicly owned debt. Z Capital is Affinity’s major shareholder, controlling 40.5 percent of the company, which operates 11 casinos in four states. In a letter to Affinity’s board, Z Capital CEO James Zenni said the Illinois-based investment group let the exclusivity agreement it had with Affinity lapse last week because there are “no foreseeable prospects for a strategic transaction given the state of the credit markets.” (David Becker/Las Vegas Review-Journal)Īffinity Gaming investor Z Capital Partners abandoned its efforts to acquire all remaining shares of the Las Vegas-based casino company, according to a securities filing Monday. Vegas Golden Knights owner Bill Foley also has a number of blank-check companies, one of which announced plans last month to merge with an online payments processing firm tied to big-name casino companies.Ĭontact Bailey Schulz at Follow on Twitter.Affinity Gaming. Major companies such as Virgin Galactic and Draftkings have gone public through SPACs within the last two years. Additional units are set to be listed on the Nasdaq market under the symbol GHACU. The SPAC’s management team includes Z Capital President and CEO James Zenni and Affinity Gaming CEO Mary Beth Higgins.Īffinity Gaming has agreed to purchase more than $6.7 million worth of units. Target businesses may include gaming properties or businesses, properties owned by real estate investment trusts, distributed gaming platforms, online gaming or sports wagering companies or gaming technology companies. “We will look for opportunities where we can leverage our significant experience and expertise to help one or more businesses achieve long-term strategic and operational excellence.” “We seek to acquire one or more businesses with assets that are fundamentally sound yet are underperforming their potential,” the filing reads. Gaming & Hospitality Acquisition has not started any serious discussions, but SEC filings say it’s targeting gaming and hospitality businesses. This style of merger gives private operating companies a fast pass through the IPO process and offers the SPAC founders a stake in the newly acquired business. These entities - also referred to as special purpose acquisition companies, or SPACs - are formed solely to raise money through an initial public offering and merge with existing, operating companies. Z Capital-owned Affinity Gaming is the parent company of Silver Sevens casino in Las Vegas and seven other properties across Nevada, Iowa and Missouri, according to its website.īlank-check companies such as Gaming & Hospitality Acquisition have no commercial operations. Gaming & Hospitality Acquisition, which registered for an IPO on Friday, plans to merge with its sponsor, Affinity Gaming Holdings LLC, and at least one other company. “Our … strategy will be to identify, acquire and build a company in the gaming and hospitality sectors that complements the experience of our management team,” according to a Friday filing with the U.S. The merger would take place through Gaming & Hospitality Acquisition Corp., a blank-check company with plans to raise between $150 million and $172.5 million through an initial public offering. Las Vegas-based Affinity Gaming is on the hunt for an acquisition. ![]() Affinity Gaming operates the off-Strip Silver Sevens. ![]()
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