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, Feb. 15, 2022 /PRNewswire/ -- 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.
![AGS Logo (PRNewsfoto/AGS) AGS Logo (PRNewsfoto/AGS)](https://mma.prnewswire.com/media/654341/AGS_logo_R_Logo.jpg)
"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.
Company Overview
AGS is a global company focused on creating a diverse mix of
entertaining gaming experiences for every kind of player. Our roots
are firmly planted in the Class II tribal gaming market, but our
customer-centric culture and remarkable growth have helped us
branch out to become one of the most all-inclusive commercial
gaming equipment suppliers in the world. Powered by high-performing
Class II and Class III slot products, an expansive table products
portfolio, highly rated social casino, real-money gaming solutions
for players and operators, and best-in-class service, we offer an
unmatched value proposition for our casino partners. Learn more
at playags.com.
AGS Investor &
Media Contacts:
Brad Boyer, Senior Vice President Corporate Operations
and Investor Relations
bboyer@playags.com
Julia Boguslawski, Chief Marketing Officer
jboguslawski@playags.com
©2022 PlayAGS, Inc. Products referenced herein are sold by
AGS LLC or other subsidiaries of PlayAGS, Inc. Solely for
convenience, marks, trademarks and trade names referred to in this
press release appear without
the ® and TM and SM
symbols, but such references are not intended to indicate, in any
way, that PlayAGS, Inc. will not assert, to the fullest extent
under applicable law, its rights or the rights of the applicable
licensor to these marks, trademarks and trade names.
Forward-Looking Statements
This release contains, and oral statements made from time to
time by our representatives may contain, forward-looking statements
based on management's current expectations and projections, which
are intended to qualify for the safe harbor of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements include statements regarding the proposed public
offering and other statements identified by words such as
"believe," "will," "may," "might," "likely," "expect,"
"anticipates," "intends," "plans," "seeks," "estimates,"
"believes," "continues," "projects," "targets" and similar
references to future periods, or by the inclusion of forecasts or
projections. All forward-looking statements are based on current
expectations and projections of future events.
These forward-looking statements reflect the current views,
models, and assumptions of AGS, and are subject to various risks
and uncertainties that cannot be predicted or qualified and could
cause actual results in AGS's performance to differ materially from
those expressed or implied by such forward looking statements.
These risks and uncertainties include, but are not limited to, the
ability of AGS to maintain strategic alliances, unit placements or
installations, grow revenue, garner new market share, secure new
licenses in new jurisdictions, successfully develop or place
proprietary product, comply with regulations, have its games
approved by relevant jurisdictions, the effects of COVID-19 on the
Company's business and results of operations and other factors set
forth under Item 1. "Business," Item 1A. "Risk Factors" in AGS's
Annual Report on Form 10-K, filed with the Securities and Exchange
Commission. All forward-looking statements made herein are
expressly qualified in their entirety by these cautionary
statements and there can be no assurance that the actual results,
events or developments referenced herein will occur or be realized.
Readers are cautioned that all forward-looking statements speak
only to the facts and circumstances present as of the date of this
press release. AGS expressly disclaims any obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ags-successfully-completes-debt-refinancing-301482867.html
SOURCE AGS