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AGS successfully completes debt refinancing

15 February 2022

(PRESS RELEASE) -- PlayAGS Incorporated today announced it has successfully completed the refinancing of its total debt outstanding through the issuance of a senior secured first lien term loan in an aggregate principal amount of $575.0 million due 2029, 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 a $40.0 million senior secured first lien revolving facility due 2027, which was undrawn at close. The New Term Loan Facility will bear interest at the Secured Overnight Financing Rate 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.”

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