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Z Capital Partners Files Investor Presentation for Affinity Gaming Board

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Press Release
Published on:
Apr/24/2013
Z Capital Partners Files Investor Presentation for Affinity Gaming Board

LAKE FOREST, Ill. -- Z Capital Partners, L.L.C. ("Z Capital"), a Chicago-based private equity firm and the largest shareholder in Affinity Gaming (the "Company" or "Affinity"), with over 30% of outstanding shares, today filed an investor presentation supporting its nomination of two highly qualified, independent candidates to the Affinity Gaming Board. The presentation is available on the "Media Room" tab of Z Capital's web site at www.zcap.net and will be filed with the Securities and Exchange Commission ("SEC") later today.

The presentation includes information regarding Z Capital's proposal for a new Affinity Board consisting of seven members, including nominees from investors Z Capital and Silver Point Capital L.P. ("Silver Point").  Z Capital believes that a proper, balanced Board reflecting a range of perspectives from shareholders, industry experts and management is in the best interests of all Affinity shareholders. In particular, the presentation provides details of Z Capital's operational, financial, corporate governance and industry experience, as well as its deep pool of resources that will be a catalyst for maximizing shareholder value. Additionally, the Board proposed by the Company and Silver Point, which does not include nominees from Z Capital, will effectively mean that Silver Point is taking control of the Company.  Leaving the Board in the hands of a single shareholder is a decision Z Capital believes is unwise and does not ensure that all shareholders' interests are protected.

Specifically, the presentation illustrates the following key points:

  • The Affinity Board has failed to demonstrate the skill, expertise, or governance best practices that Affinity's shareholders deserve and has not acted in the best interests of shareholders.
  • A Silver Point dominated Board is not in the best interest of all shareholders.
    • Silver Point was influential in seating the current Board, including Chairman Don Kornstein, and the Company's four new "independent" nominees were all selected by Silver Point.
  • Z Capital is nominating two highly qualified, independent candidates that offer necessary balance and perspective to round out the Board.
    • Z Capital has been the most vigilant and vocal shareholder in protecting ALL shareholder rights and in scrutinizing the Board's actions.
    • Z Capital has a long and successful track record of working collaboratively with fellow board members and management at portfolio companies in developing a unified, value-maximizing strategy for all.
    • Z Capital's nominees have had extensive interaction with Affinity's state gaming regulators (Nevada, Iowa, Missouri, and Colorado) and Z Capital, along with James J. Zenni, Jr., have been "found suitable" in those states.  Additionally, Mr. Zenni has nearly two decades of experience investing in gaming companies both large cap and small cap.
    • Z Capital's nominees have the operational, corporate governance and financial skills and experience needed by the Board at this time.

Z Capital believes that if the slate of directors nominated by the Company and Silver Point, with Mr. Kornstein as the Chairman, obtains control, then significant shareholder value will continue to be hindered. Z Capital further notes that now is the time for a well-balanced, highly qualified Board to be elected to protect shareholder value.

Z Capital urges all shareholders to vote the gold proxy card today to maximize their investment in the Company and ensure that the Board and management act in the best interest of shareholders.

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