GameTech International Inc. of Reno said last week it reached an agreement on a $40 million credit facility, a deal that will allow it to reduce its borrowing costs by more than 3 percentage points.
US Bank NA is lead bank in the refinancing deal, and Bank of the West is participating in the loan.
GameTech will use the money to purchase a 102,918-square-foot office and industrial facility at 8850 Double Diamond Parkway, just around the corner from its current leased facilities at 900 Sandhill Road. The building previously had been occupied by Purdy Corp.
In a filing with the Securities and Exchange Commission, publicly held GameTech said it planned to pay $7.2 million in cash for the building. The
seller is RKD Holdings LLC, a Reno company,
The building will be developed into 30,000 square feet of offices and 70,000 square feet of manufacturing and warehouse space, the company said. GameTech sells electronic bingo and gaming systems.
GameTech also will use a portion of the new financing to refinance loans associated with its 2007 purchase of Summit Amusement & Distributing Inc., a Montana manufacturer of video lottery terminals.
That lending was arranged through Ableco Finance LLC of New York City.
Jay Meilstrup, president and chief executive officer of GameTech, said the new financing package carries an effective interest rate that is more than 3 percentage points lower than the existing loan. NNBW staff
