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Affinity Gaming announces plans to refinance existing capital structure

3 June 2016

(PRESS RELEASE) -- Affinity Gaming today announced plans to refinance its existing capital structure. Upon completion of the transaction, the Company intends to use $300 million in new financing and approximately $90 million in cash on hand to call its $200 million of outstanding 9% senior notes due 2018 and repay its existing $180 million secured term loan. The Company expects total leverage to decline to 4.2x from 5.3x pro forma for the transaction.

The total financing package is expected to include two credit facilities comprised of:

  • A $300 million Term Loan B Facility; and
  • An undrawn $75 million revolving credit facility.

Walter Bogumil, Chief Financial Officer of Affinity Gaming, commented, "Over the last two years, we have executed on a strategic plan aimed at significantly improving the Company's operating trajectory and margins. This includes rebuilding our executive team with new leadership across most operating departments and executing against a new set of operating principles. In addition, a significant priority for the Company has been to simplify our capital structure and de-lever the business. The expected refinancing announced today will satisfy both of these objectives by reducing gross leverage, materially reducing interest expenses and improving our cash flow profile. We have established a strong financial foundation on which Affinity can leverage our diversified base of eleven regional gaming facilities to drive additional operational improvements and generate increased free cash flow."

Credit Suisse, Macquarie Capital and Fifth Third Bancorp are serving as Joint Lead Arrangers for the transaction. Credit Suisse will assume the role of Administrative Agent following the close of the transaction.

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