LAS VEGAS, Dec. 23, 2013 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced a refinancing of all its outstanding long term debt with a new five year, $12,750,000 Reducing 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 President and CEO Michael Shaunnessy. "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.
"We are thrilled to have Mutual of Omaha as our new lending partner. The new facility, with a 5 year term, provides greater financial stability for Nevada Gold as well as significantly improving our cash flow. We look forward to working with Mutual of Omaha as we seek to expand our operations and build value for our shareholders."
This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate," "believe," "expect," "future," "intend," "plan," and similar expressions to identify forward-looking statements. Forward-looking statements include, without limitation, our ability to increase income streams, to grow revenue and earnings, and to obtain additional gaming and other projects. These statements are only predictions and are subject to certain risks, uncertainties and assumptions, which are identified and described in the Company's public filings with the Securities and Exchange Commission.
About Nevada Gold
Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) of Las Vegas, Nevada is a developer, owner and operator of 10 gaming operations in Washington (wagoldcasinos.com) and a slot route operation in Deadwood, South Dakota (dakotaplayersclub.com). The Company also has a social gaming application, Gold Star Slots, available on Facebook, or in the Apple Store, and a gaming license in Nevada. For more information, visit www.nevadagold.com.
CONTACT: Nevada Gold & Casinos, Inc. Michael P. Shaunnessy (702) 685-1000
Source:Nevada Gold & Casinos, Inc.