Everi flags US$8mln annual saving on term loan repricing
Everi Holdings Inc, a specialist in cash handling technology and electronic game content for the casino industry, said in a Monday statement it had concluded the repricing of its US$820-million senior secured term loan.
Under the amended agreement, the interest rate has been reduced by 100 basis points to the London Interbank Offered Rate (LIBOR) +3.50 percent, from LIBOR +4.50 percent. The LIBOR floor remains unchanged at 1.00 percent.
The firm said that, based on the outstanding term loan balance of US$818.0 million, the repricing was expected to generate cash interest savings of approximately US$8.2 million on an annualised basis.
“These expected cash interest savings are in addition to the cash interest savings achieved as a result of the company’s May 2017 refinancing of its former first lien term loan and senior secured notes,” it stated on Monday.
Everi said the maturity date for the term loan remains May 9, 2024, and no changes were made to the financial covenants or other debt repayment terms.
“We continue to reduce our annual cash interest costs and improve our ability to generate additional free cash flow in future periods, which provides opportunities for incremental deleveraging and the creation of new value for our shareholders,” said Randy Taylor, Everi executive vice president and chief financial officer, in a prepared statement in Monday’s press release.
The Everi brand was formed in August 2015, following a US$1.1-billion cash-consideration merger in December 2014 of Las Vegas-based Global Cash Access Holdings Inc and Multimedia Games Holding Co Inc.
In October Everi announced it had narrowed its net loss for the three months to September 30, when judged year-on-year. Such loss was US$4.3 million on revenue of US$247.3 million, compared to a US$8.3-million loss on revenue of US$222.2 million in the prior-year quarter.
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