PlayAGS, a prominent player in the gaming entertainment sector, has recently concluded a significant financial maneuver aimed at optimizing its credit facility. The company strategically repriced its term loan credit facility, aligning with its objective to enhance financial efficiency.
In its recent financial maneuver, PlayAGS targeted two key objectives: removing the credit spread adjustment related to term loan borrowings and reducing the interest rate applied to such borrowings. The company succeeded in slashing the interest rate to the secured overnight financing rate plus 3.75%, a move expected to bolster its financial position.
Alongside the repricing initiative, PlayAGS made a substantial repayment of $15 million towards its outstanding debt. These strategic actions are forecasted to yield substantial savings, exceeding $3 million in annualized cash interest expense.
Strategic Vision and Financial Objectives
Kimo Akiona, the Chief Financial Officer of AGS, emphasized the company’s commitment to lowering net leverage through a combination of sustained adjusted EBITDA growth and enhanced free cash flow conversion. Akiona reiterated, “Today’s announced transactions should help to expedite the achievement of our near and intermediate-term deleveraging objectives.”
PlayAGS, through its subsidiary AGS, has been actively expanding its presence in the US gaming market. Recent approvals in Colorado and Missouri have paved the way for the company to introduce its portfolio of electronic gaming machines (EGMs) to casino operators in these regions. This expansion enables casino patrons to enjoy a diverse range of AGS titles, further solidifying the company’s position in the domestic gaming landscape.
Additionally, PlayAGS continues to innovate with platforms like Spectra UR43, featuring popular titles from the Triple Coin Treasures brand. With a strong track record of success in various North American jurisdictions, the company is optimistic about the reception of these titles in Colorado and Missouri.
PlayAGS’ recent financial restructuring not only underscores its commitment to financial prudence but also reflects its strategic vision to drive growth and innovation in the global gaming industry. With a focus on optimizing operational efficiency and expanding market reach, the company remains poised for continued success in the dynamic gaming landscape.
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