AGS has successfully closed an incremental term loan of $95m and an amendment to its existing credit agreement. The Incremental Term Loan, which matures in February 2024, has an interest rate of LIBOR plus 1,300 basis points, with a 100 basis point LIBOR floor. The net proceeds of the Incremental Term Loan are expected to be used for general corporate purposes.
In addition to the Incremental Term Loan, the Company also amended its existing credit agreement to provide for certain changes, including, but not limited to: a suspension of the testing of the financial covenant through December 31, 2020 and a revised calculation of consolidated EBITDA when determining financial covenant compliance for the first three quarters of 2021.
AGS President and Chief Executive Officer David Lopez said: “During this global pandemic, which has had an unprecedented impact on the casino gaming industry, our focus has been to prioritize the well-being of our employees and the prudent management of the Company’s financial resources for the long-term. Execution of this incremental term loan provides us with additional liquidity and financial flexibility to navigate these uncertain and extraordinary times, and to help get our business back to being fully operational so that we can be the best partners possible to our customers as our industry begins to recover.”