08/04/2008

Shuffle Master, Inc. Announces Increased Commitments under its New Term Loan Facility and Exercise of Over-Allotment Option

Las Vegas – August 4, 2008 –Shuffle Master, Inc. (NASDAQ Global Select Market: SHFL) today announced that it has obtained additional term loan commitments of $5 million from Union Bank of California for its new term loan facility, bringing the aggregate commitments to $65 million. (As previously announced on July 14, 2008, Shuffle Master obtained term loan commitments of $60 million from Deutsche Bank Trust Company Americas, Wachovia Bank, National Association, and KeyBank National Association.) Funding of the new term loan is subject to a minimum liquidity requirement and other customary and administrative conditions.

Shuffle Master also announced today that the underwriters of the public offering of its common stock have exercised the over-allotment option in full and purchased an additional 2,647,058 shares of its common stock at the public offering price of $4.25 per share, in connection with its previous offering of 17,647,059 shares of its common stock which closed on July 25, 2008, resulting in aggregate gross proceeds of $86.25 million. Shuffle Master intends to use the net proceeds from the offering, which are expected to be approximately $80.8 million, in conjunction with the borrowings under a new term loan facility (announced in a prior press release on July 14, 2008), borrowing under its revolving credit facility and cash on hand, to repurchase the Company’s 1.25% Contingent Convertible Senior Notes in a tender offer (announced in a prior press release on July 14, 2008).

Deutsche Bank Securities Inc., Wachovia Capital Markets, LLC, KeyBanc Capital Markets Inc. and Brean Murray, Carret & Co., LLC acted as the underwriters for the offering.

“We are very pleased with the execution of this transaction, and the interest and demand in Shuffle Master,” commented Mark L. Yoseloff, Ph.D., Chairman and Chief Executive Officer. “We remain committed to materially improving Shuffle Master’s capital structure and enhancing our financial flexibility going forward.”

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on July 21, 2008. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state or jurisdiction. The offering of these securities was made only by means of a final prospectus, which may be obtained by contacting Deutsche Bank Securities Inc. by mail, Attn: Prospectus Department, 100 Plaza One, Jersey City, NJ 07311, by telephone at (800) 503-4611 or by email: prospectusrequest@list.db.com

This release contains forward-looking statements that are based on management’s current beliefs and expectations about future events, as well as on assumptions made by and information available to management. The Company considers such statements to be made under the safe harbor created by the federal securities laws to which it is subject, and assumes no obligation to update or supplement such statements. Forward-looking statements reflect and are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Factors that could cause actual results to differ materially from expectations include, but are not limited to, the following: changes in the level of consumer or commercial acceptance of the Company’s existing products and new products as introduced; advances by competitors; acceleration and/or deceleration of various product development, promotion and distribution schedules; product performance issues; higher than expected manufacturing, service, selling, administrative, product development, promotion and/or distribution costs; changes in the Company’s business systems or in technologies affecting the Company’s products or operations; reliance on strategic relationships with distributors and technology and manufacturing vendors; current and/or future litigation or claims; tax matters, including changes in tax legislation or assessments by taxing authorities; acquisitions or divestitures by the Company or its competitors of various product lines or businesses and, in particular, integration of businesses that the Company may acquire; changes to the Company’s intellectual property portfolio, such as the issuance of new patents, new intellectual property licenses, loss of licenses, claims of infringement or invalidity of patents; regulatory and jurisdictional issues (e.g., technical requirements and changes, delays in obtaining necessary approvals, or changes in a jurisdiction’s regulatory scheme or approach, etc.) involving the Company and its products specifically or the gaming industry in general; general and casino industry economic conditions; the financial health of the Company’s casino and distributor customers, suppliers and distributors, both nationally and internationally; the Company’s ability to meet its debt service obligations, including the Notes, and to refinance its indebtedness, which will depend on its future performance and other conditions or events and will be subject to many factors that are beyond the Company’s control; and various risk related to the Company’s customers’ operations in countries outside the United States, including currency fluctuation risks, which could increase the volatility of the Company’s results from such operations. Additional information on these and other risk factors that could potentially affect the Company’s financial results may be found in documents filed by the Company with the Securities and Exchange Commission, including the Company’s current reports on Form 8-K, quarterly reports on Form 10-Q and annual report on Form 10-K.

About Us		Home / News & Press / Story Detail