GGRAsia – Everi to offer US$400mln notes as part of refinancing

Everi to offer US$400mln notes as part of refinancing

Jun 29, 2021 Newsdesk Industry Talk, Latest News

Casino equipment maker and financial technology (fintech) supplier Everi Holdings Inc says it plans to offer – via a private placement to professional investors – a principal sum of US$400-million in senior unsecured notes, to mature in 2029.

It will use the proceeds to redeem in full its 7.50-percent senior unsecured notes due in 2025 and to pay related fees and expenses and “repay a portion of the borrowings outstanding under its existing credit facilities,” it said in a Monday press release. The pricing of the new notes was not mentioned either in the press release, or an accompanying filing in the United States.

Everi had mentioned in a mid-June press release previewing its second-quarter results, that after an intended refinancing of its nearly US$1.15-billion total outstanding debt, it expected to have US$1.0-billion of outstanding total debt and to have a new US$125-million revolving credit facility.

The new notes will be guaranteed “by the company and certain of the company’s direct and indirect domestic subsidiaries,” said the group in the Monday release.

The group stated that after the closing of the new offering, it “intends to enter into certain new credit facilities, the proceeds of which, together with cash on hand,” were to be used to “repay in full the remaining outstanding borrowings under its existing credit facilities”.

In a June 21 note, Fitch Ratings Inc said it had upgraded Everi’s issuer default rating to ‘B+’, a non-investment grade, from ‘BB-’.

“The one-notch upgrade reflects significantly reduced leverage pro forma for the refinancing, due to the company utilising nearly US$180 million in excess cash to pay down debt and exhibiting strong [earnings before interest, taxation, depreciation and amortisation] EBITDA growth in the first half 2021,” said the ratings agency.

In the first quarter, Everi reported what it said was a record-high level of quarterly net income.