Affinity Gaming Reaches Settlement Agreement with Shareholders and Announces Amendment to Credit Agreement

The Agreement resolves Z Capital’s dispute with the Company and previous Board members concerning corporate governance and the implementation of a “poison pill” while providing for the direct involvement of the Company’s largest shareholders in setting its strategic direction.

The Company also announced today an amendment to the Credit Agreement for its Senior Secured Term Loan Facility. This amendment modifies certain financial covenants, provides additional operating flexibility for the Company and received the full support of requisite lenders in the facility.

“We are pleased to have reached this agreement with our fellow Affinity shareholders and to see the litigation resolved,” said James J. Zenni, President and Chief Executive Officer of Z Capital. “We believe this mutually agreeable decision is in the best interests of Affinity and all stakeholders, as the Company’s two largest shareholders are now actively involved with the Board. The additional support of the Company’s lenders and bondholders underscores the Company’s ongoing positive development and we remain committed to building off this momentum by working constructively with our fellow shareholders and management. We are looking forward to Affinity’s bright future.”

“The resolution of the litigation and the increased direct involvement of the Company’s largest shareholders will allow Affinity to focus on growth and value creation,” said Rich Parisi, Chairman of Affinity and Senior Analyst with Silver Point. “In addition, we are pleased to have completed the amendment to the Company’s Credit Agreement, which reflects Affinity’s large cash balance and strong financial positioning.”

Z Capital Partners, L.L.C. is a leading private equity firm with approximately $1.7 billion of regulatory assets and committed capital under management and with offices in Lake Forest, IL and New York, NY. Z Capital pursues an opportunistic, value-oriented approach in private equity that includes making control investments in middle-market companies that may require growth capital, turnaround, restructuring or other special situations.

Z Capital portfolio companies currently have aggregate worldwide annual revenues of approximately $1.5 billion, sell products in over 30 countries, and have in excess of 190,000 associates directly and through joint ventures.

Silver Point Capital is a private investment firm focused on credit and special situations investing. The firm, which manages approximately $8.5 billion, was founded in 2002 by Edward A. Mul and Robert J. O’Shea.