By Sheri Kasprzak
Atlanta, June 17 - Mikohn Gaming Corp. said it has entered into an agreement to sell up to $40 million in convertible notes to International Game Technology.
The senior subordinated convertible notes bear interest at 6% annually, mature in six years and are convertible into common shares at $12.19 each.
A third of the notes are automatically convertible into common shares if the company's stock trades above $22.00 per share for 20 consecutive trading days.
The offering is conducted as part of a joint development and distribution agreement between Mikohn and International Game, related to table gaming products.
Under the agreement, International Game will be responsible for the sale and distribution of products developed under the joint agreement.
Based in Las Vegas, Mikohn develops products used in the gaming industry.
| Issuer: | Mikohn Gaming Corp.
|
| Issue: | Senior subordinated convertible notes
|
| Amount: | $40 million (maximum)
|
| Maturity: | Six years
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $12.19
|
| Conversion ratio: | Into 82.0345 shares per $1,000 in principal of notes
|
| Call: | A third of notes automatically convert into common shares if the company's stock trades above $22.00 per share for 20 consecutive trading days
|
| Warrants: | No
|
| Investor: | International Game Technology
|
| Settlement date: | June 13
|
| Stock price: | $13.88 at close June 13
|
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