Provider of land-based and digital casino gaming content, Everi Holdings, has this week announced it has successfully completed the refinancing of $1bn of debt. This news arrives a number of weeks after the company secured $400m in senior unsecured notes to ease debt repayment.
Refinancing sees the company close a seven year senior secured loan of $600m, due in 2028 and issued at 99.75% of par, as well as the previously mentioned closing of $400m in senior unsecured notes due 2029, and a $125 million senior secured revolving credit facility due 2026.
The new credit facilities secured by the company have an interest rate of LIBOR ( London Interbank Offered Rate) plus 2.50% subject to a 0.50% LIBOR floor.
"The refinancing of our outstanding debt strengthens our balance sheet and provides Everi with substantial added financial flexibility. Our improved operating performance and recent rating agency upgrades helped drive strong interest from the investment community for our refinancing transactions," said Mark Labay, chief financial officer of Everi.
“The replacement of our existing term loan with a new, widely syndicated term loan and the strategic prepayment of our incremental term loan provided significant annual interest savings, while extending the maturity out until 2028.”
This news also sees the company upsize its revolver from $35m to $125m. This, combined with other reductions in debt, puts annualized cash borrowing costs at current rates now approximately $23 million less than it was on June 30, 2021.
Labay added: “In addition, our total outstanding debt is more favorably balanced between secured and unsecured debt. We will continue to prioritize Free Cash Flow generation and investing to sustain our growth, while maintaining a prudent long-term total net debt leverage target of approximately 2.5-to-3.0 times our Adjusted EBITDA."
