SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported): August 19, 1998
Powerhouse Technologies, Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-19322 81-0470853
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
115 Perimeter Center Place, Suite 911, Atlanta, GA 30346
(Address of principal executive offices and zip code)
(770) 481-1800
(Registrant's telephone number, including area code)
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Item 5. Other Events
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On August 19, 1998, the Company announced that it has received a $100
Million credit facility arranged and syndicated by Lehman Brothers, Inc.
Proceeds of the borrowing will be used to refinance the Company's existing
credit facility and other outstanding long-term debt and finance capital needs.
Further, the Board of Directors has authorized the repurchase of up to $10
Million of the Company's stock. A copy of the Company's Press Release making the
announcement is attached as Exhibit 99.1 hereto.
Item 7. Financial Statements and Exhibits
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(c) Exhibits.
Exhibit 99.1 Company Press Release dated August 19, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
POWERHOUSE TECHNOLOGIES, INC.
Date: August 19, 1998 /s/ Susan J. Carstensen
------------------------
Susan J. Carstensen
Chief Executive Officer
(authorized to sign on behalf of Registrant)
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EXHIBIT INDEX
Exhibit Page
Number Description Number
- ------ ----------- ------
99.1 Company Press Release dated August 19, 1998 5
4
Exhibit 99.1
FOR IMMEDIATE RELEASE: Wednesday, August 19, 1998
Contact: Susan J. Carstensen Wayne Brown
Chief Financial Officer Senior Vice President
Powerhouse Technologies, Inc. Carl Thompson Associates
877/770-7974 800/959-9677
POWERHOUSE TECHNOLOGIES, INC. RECEIVES
$100 MILLION FINANCING COMMITMENT
AND ANNOUNCES STOCK BUY-BACK PROGRAM
[ATLANTA] -- Powerhouse Technologies, Inc. (Nasdaq National Market: PWRH)
announced today that Lehman Brothers, Inc. has agreed to structure, arrange and
syndicate a $100 million credit facility for the Company, and Lehman Brothers
Commercial Paper, Inc. has committed to providing the entire amount of the
credit facility.
The credit facility consists of a five-year, $50 million revolving credit
facility and two $25 million term loans maturing in five and six years,
respectively. The new facility will be used in part to refinance existing
indebtedness. Closing of the transaction is contingent upon completion of
definitive agreements.
"The scope and flexibility of this facility allows us to continue our
growth strategies, including our casino addition at our Sunland Park racetrack,
implementation of the Pennsylvania Lottery contract and additional new business
initiatives," said Richard M. Haddrill, President and Chief Executive Officer of
Powerhouse Technologies. "Further, the facility enables us to repurchase our
common stock."
The Company's Board of Directors has authorized an open market securities
repurchase plan, effective immediately, for up to $10 million of the Company's
common stock.
"We believe that on-going repurchases of our stock at current attractive
valuations represent an appropriate use of cash and are consistent with our
commitment to enhancing shareowner value," said Susan J. Carstensen, Chief
Financial Officer of Powerhouse Technologies.
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Powerhouse Technologies, Inc., through its operating units - AWI, VLC,
United Tote and Sunland Park racetrack -- is one of the leading suppliers of
system software, equipment, and related services for on-line lotteries, video
lotteries and pari-mutuel systems throughout the world, and a manufacturer and
distributor of gaming devices for casinos. Presently, the Company's equipment
and systems are in operation in the United States, Canada, Australia, Asia,
Europe, South America and the Caribbean.
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The private securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements except for historical information. Some
statements in this release are forward-looking and are subject to certain risks
and uncertainties. These include, but are not limited to, economic conditions,
changes or regulation, the further approval of regulatory authorities,
production and/or quality control problems, demand for the products and services
of the Company, and the effects of competition. These risks and uncertainties
could significantly affect the anticipated results in the future and actual
results may differ materially from any forward-looking statements. For more
information on the potential factors which could affect the Company's business
and financial results, see the Company's filing with the Securities and Exchange
Commission. The Company undertakes no obligation to update or revise such
statements to reflect new circumstances.
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