Illinois-based company raises stake in Affinity Gaming

An Illinois-based financial firm has increased its ownership in Affinity Gaming to 14.9 percent, but is expected to remain a passive investor in the casino company and not seek Nevada licensing.

For the second time in a month,
Z Capital Partners increased its stake in Affinity, which operates casinos in Nevada, Iowa and Missouri, according to documents filed with the Securities and Exchange Commission.

Z Capital now owns more than 1.9 million shares of Affinity stock. The company, formally known as Herbst Gaming, has public debt.

Affinity is privately held by a group of investors who took control of Herbst following the company’s bankruptcy and supervised reorganization at the end of last year.

Silver Point Capital, a Greenwich, Conn.-based hedge fund, is Affinity’s largest owner with almost 19 percent of the company.

Affinity operates the three casinos in Primm and the off-Strip Terrible’s.

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