Elixir Gaming says Bricoleur waives early repayment of 8% notes

By Laura Lutz

Des Moines, Sept. 12 - Elixir Gaming Technologies, Inc. amended the purchase agreement for its 8% senior secured notes held by Bricoleur Capital Management, deferring an $825,000 payment previously owed under the note.

The amendment was announced in an 8-K filing with the Securities and Exchange Commission.

Under the original terms of the notes, Elixir was required to use half of the proceeds from any equity financing to repay the principal amount of the notes.

Elixir completed such a financing in June, and, under the original terms, owed $825,000 in principal to Bricoleur as a result.

The amended agreement defers that payment and allows Elixir to repay the notes as though the June financing had not occurred.

The agreement also waived a change-of-control provision with respect to an agreement between Elixir Gaming and Elixir Group Ltd. that was approved by shareholders on Sept. 10. Without the waiver, the provision would have allowed Bricoleur to accelerate the repayment of the note.

The amendment added net-exercise provisions to the warrants, and Elixir issued 975,00 shares in exchange for the cancellation of 2,275,000 warrants.

Bricoleur bought $13 million principal amount of the notes in a private placement on May 1, 2006. Bricoleur also received for 2,600,000 shares, exercisable at $2.00 per share.

Las Vegas-based Elixir Gaming leases electronic games and gaming tables.

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