Las Vegas -based provider of land-based and digital casino content, Everi, has this week announced the successful closing of $400m in senior unsecured notes, due for 2029 in an attempt to reduce the company’s debt.
The $400m will be repaid at 5% and these new notes are guaranteed by the company’s wholly-owned subsidiaries.
The funds will be used to redeem, in part, the company’s $820m term loan due for 2025 and pay all related fees and expenses involved. Upon this payment the company intends to repay all borrowings and terminate all currently existing credit.
The notes were offered and sold in accordance with rule 144A under the Securities Act of 1933. Therefore, the $400m cannot be offered or sold in the United States. The company made clear its statement does not equal an offer to sell or buy the new notes.
The result of this announcement will be a reduction of the company’s $1.15bn debt.
In connection to this announcement, Everi recently announced its expected Q2 results for 2021. Revenue of $167m to $172m has been predicted with net income of $31m to $34m. Furthermore, adjusted EBITDA has been placed at $87m to $91m.
Speaking on the results, Michael Rumbolz, CEO of Everi, said: “Our expected record 2021 second quarter results highlight the ongoing strength of our core recurring revenue businesses and the benefit of our organic growth initiatives. Both our Games and FinTech segments are performing significantly above pre-pandemic periods, driving substantial improvements in our total revenue, net income, Adjusted EBITDA, and Free Cash Flow.”
