Nevada Gold & Casinos announced a refinancing of its outstanding long-term debt with a new five-year, $12.7 revolving credit facility with Mutual of Omaha Bank.
“Today we closed on a new credit facility with Mutual of Omaha that substantially lowers our interest rate, and provides greater financial flexibility with a revolver feature,” said Michael Shaunnessy, president and CEO, Nevada Gold & Casinos. “Along with the closing of this facility we used available cash to reduce our total outstanding long term debt by $1.2 million. The current expected all-in effective rate of the financing is approximately 6.5% compared to our current rate of 12.0%. The lower interest rate, coupled with less debt outstanding will reduce our annual interest expense by approximately $0.7 million, which will increase our annual earnings per share by $.03.
Las Vegas-based Nevada Gold & Casinos is a developer, owner and operator of ten gaming operations in Washington and a slot route operation in Deadwood, SD. The company also has a social gaming application, Gold Star Slots, available on Facebook or in the Apple Store.