AGS wraps up term loan repricing, elects to repay $15m

PlayAGS has completed its term loan credit facility repricing. Through this transaction, the company aimed to “remove the credit spread adjustment with respect to term loan borrowings” as well as “reduce the interest rate applied to such borrowings to the secured overnight financing rate plus 3.75%.”

Along with completing the repricing, the company decided to repay $15m of its total outstanding debt.

The company has estimated that these financial moves will generate savings of more than $3m in its annualized cash interest expense.

American Gaming Systems (AGS) is a subsidiary of its parent company, PlayAGS. As a global gaming entertainment supplier, the company provides the worldwide gaming industry with slot, table, interactive products and services.

AGS Chief Financial Officer Kimo Akiona further discussed the company’s plan to lower its net leverage.

Akiona commented, “As an organization, we remain singularly focused on reducing net leverage through a combination of consistent adjusted EBITDA growth and improving free cash flow conversion.

“To that end, today’s announced transactions should help to expedite the achievement of our near and intermediate-term deleveraging objectives.”

The company has recently broadened its US footprint by gaining a recent approval to release its portfolio of electronic gaming machines (EGMs) to casino operators in Colorado and Missouri. Through the release, casino patrons in both states can access a wide variety of AGS titles.

Players in the US can also access the company’s Spectra UR43 platform, which features titles from the Triple Coin Treasures brand. The company said it is confident that these titles will gain a following in Colorado and Missouri the way they have in other jurisdictions around North America.

Amanda Foster

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