US-based digital casino products and player loyalty solutions provider Everi Holdings Inc says it has successfully renegotiated and repriced a US$735.5 million First Lien Term Loan under its Credit Agreement.
The amended Credit Agreement sees the LIBOR component of the interest rate applicable to the First Lien Term Loan reduced by 25 basis points to 0.75% from 1.00%, and the Base Rate floor component to 1.75% from 2.00%.
The amended Credit Agreement includes six months of 101 soft call protection, Everi added, while the maturity date of the loan remains unchanged at 9 May 2024.
“This repricing of our First Lien Term Loan reflects the tremendous progress we are achieving with strengthening our operating results,” said Everi’s Executive Vice President and Chief Financial Officer, Mark Labay.
“At current rates and with our existing balance on the First Lien Term Loan outstanding, the 25-basis-point reduction in our LIBOR floor is expected to generate cash interest rate savings of US$1.8 million on an annualized basis.
“This repricing provides another important improvement to our capital structure following similar activities over the past few years that have significantly lowered the weighted average interest rate on our outstanding debt obligations. These savings improve our ability to generate Higher Free Cash Flow in future periods, providing opportunities for incremental deleveraging and the creation of new value for our shareholders.”
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