AGS Successfully Completes Debt Refinancing
Key Transaction Highlights
- Lowers total principal amount of debt outstanding by approximately $40 million
- Reduces annualized cash interest expense by approximately $10 million
- Expands Revolving Credit Facility capacity to $40 million
- Extends key debt maturities
LAS VEGAS, February 15, 2022 - PlayAGS, Incorporated (NYSE: AGS) ("AGS" or the "Company") today announced it has successfully completed the refinancing of its total debt outstanding through the issuance of (i) a senior secured first lien term loan in an aggregate principal amount of $575.0 million due 2029 (the “New Term Loan Facility”), the proceeds of which, together with cash on hand, were used to repay all amounts outstanding under the Company’s existing term loan facilities and to pay related fees and expenses, and (ii) a $40.0 million senior secured first lien revolving facility due 2027 (the “New Revolving Credit Facility”), which was undrawn at close. The New Term Loan Facility will bear interest at the Secured Overnight Financing Rate (“SOFR”) plus 4.00%, subject to a 0.75% SOFR floor, while the New Revolving Credit Facility will bear interest at SOFR plus 4.00%, subject to a 0.00% SOFR floor.
“I am extremely pleased with the outcome of the Company’s recent debt refinancing, as it simultaneously lowers our total principal amount of debt outstanding, reduces our borrowing costs and extends key debt maturities,” commented AGS Chief Financial Officer, Kimo Akiona. “Additionally, the increase in our revolver capacity from $30 million to $40 million strengthens our overall financial flexibility. Looking ahead, supported by the approximately $10 million of annualized cash interest expense savings we expect to realize, relative to the level incurred for the full-year 2021, coupled with the operating momentum we continue to see in the business, I remain confident in our ability to deliver upon our previously issued year-end 2022 net leverage target of less than 4.0x.”
For additional details regarding the refinancing transaction, investors should review the form 8-K filed today with the SEC.