The debt restructuring has lowered PlayAGS’ overall debt by approximately $40.0m, while annual cash interest expenses have decreased by around $10.0m.
The first lien term loan has been agreed in principle, the repayment of which is due in 2029 at an interest rate of 4%. The supplier has also secured a $40.0m credit facility which also carries a 4% interest rate.
PlayAGS recently forecast revenue growth and reduced net losses for its full year 2021 results. Chief financial officer Kimo Akiona said: “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.
“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 annualised cash interest expense savings we expect to realise, 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.”