Everi Announces Successful Completion of $125 Million Incremental Term Loan and Certain Amendments to Its Senior Secured Cred...
April 21 2020 - 4:10PM
Everi Holdings Inc. (NYSE: EVRI) (“Everi” or the “Company”), a
premier provider of gaming products and financial technology and
loyalty solutions in the gaming industry, today announced that the
Company successfully completed its new First Lien Term Loan
(“Incremental Financing”) in the amount of $125 million. The
Incremental Financing has a maturity concurrent with the May 2024
maturity date under its existing Senior Secured Credit Facility
(“Existing Credit Agreement”) and an interest rate of LIBOR plus
1050 basis points with a 1% LIBOR floor. The net proceeds are
intended to provide additional liquidity and financial flexibility
to better position Everi to withstand the challenging conditions
resulting from the novel COVID-19 pandemic and strengthen its
operations as industry conditions improve.
In addition to this Incremental Financing, the
Company also amended its Existing Credit Agreement to provide for
changes to certain covenant provisions, including, but not limited
to: eliminating the financial maintenance covenant related to
senior secured leverage for each of the remaining quarters in 2020;
modifying the compliance threshold in each of the quarters
thereafter; and changes that limit the Company’s ability to make
certain restricted payments and designate unrestricted subsidiaries
(the “Amendment”).
After fees, discounts and expenses from the
Incremental Financing and the Amendment, the Company received
approximately $118 million in net proceeds. Prior to the closing of
the Incremental Financing, the Company had a total principal
balance outstanding of approximately $1.06 billion comprised of
$735.5 million on the Company’s existing First Lien Term Loan due
in 2024, $35.0 million on its Revolving Credit Facility due in 2022
and $285.4 million of its 7.50% Senior Unsecured Notes due in
2025.
“With our revenue and the associated workload
essentially having been reduced to near zero and our limited
clarity as to the various timelines when our customers may restart
their operations, we have taken prudent actions to position our
Company to withstand this period of minimal or reduced gaming
industry activity,” said Michael Rumbolz, Chief Executive Officer.
“We believe this incremental financing provides Everi with the
flexibility to withstand this current disruption and ensure that as
activity resumes we are positioned to support our customers as they
reopen for business, bring our employees back to work, and regain
the operating and financial momentum we consistently demonstrated
prior to the COVID-19 outbreak.”
“Our continued hope is that the steps undertaken
to contain the novel COVID‐19 virus will prevail and that our
economy and way of life can get back to normal as quickly as
possible,” added Rumbolz.
About Everi Everi is a leading
supplier of imaginative entertainment and trusted technology
solutions for the casino, interactive, and gaming industry. With a
focus on both customers and players, the Company develops
entertaining games and gaming machines, gaming systems and
services, and is the preeminent and most comprehensive provider of
core financial products and services, player loyalty tools and
applications, and intelligence and regulatory compliance solutions.
Everi’s mission is to provide casino operators with games that
facilitate memorable player experiences, offer seamless and secure
financial transactions for casinos and their patrons, and deliver
software tools and applications to improve casino operations
efficiencies and fulfill regulatory compliance requirements. Everi
provides these products and services in its effort to help make its
customers even more successful. For more information, please visit
www.everi.com, which is updated regularly with financial and other
information about the Company.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains “forward-looking
statements” as defined in the U.S. Private Securities Litigation
Reform Act of 1995, as amended. In this context, forward-looking
statements often address our expected future business and financial
performance, and often contain words such as “goal,” “target,”
“future,” “estimate,” “expect,” “anticipate,” “intend,” “plan,”
“believe,” “hope,” “seek,” “project,” “may,” “should,” “designed
to,” “in an effort to,” “will provide,” “look forward to,” or
“will” and similar expressions to identify forward-looking
statements. These statements are based upon management’s current
expectations, assumptions and estimates and are not guarantees of
timing, future events or performance. Actual results may differ
materially from those contemplated in these statements, due to
risks and uncertainties.
Forward-looking statements are neither
historical facts nor assurances of future performance. Instead,
they are based only on our current beliefs, expectations and
assumptions regarding the future of our business, future plans and
strategies, projections, anticipated events and trends, the economy
and other future conditions. Because forward-looking statements
relate to the future, they are subject to inherent risks,
uncertainties and changes in circumstances that are often difficult
to predict and many of which are beyond our control. Our actual
results and financial condition may differ materially from those
indicated in forward-looking statements. Important factors that
could cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, without limitation, the impact of the ongoing COVID-19
global pandemic on our business, operations and financial
condition, our history of net losses and our ability to generate
profits in the future; our substantial leverage and the related
covenants that restrict our operations; our ability to generate
sufficient cash to service all of our indebtedness, fund working
capital, and capital expenditures; our ability to withstand
unanticipated impacts of a pandemic outbreak of uncertain duration;
our ability to withstand the loss of revenue during the closure of
our customers’ facilities; our ability to maintain our current
customers; our ability to compete in the gaming industry; our
ability to execute on mergers, acquisitions and/or strategic
alliances, including the timing and closing of acquisitions and our
ability to integrate and operate such acquisitions consistent with
our forecasts; our ability to access the capital markets to raise
funds; expectations regarding our existing and future installed
base and win per day; expectations regarding development and
placement fee arrangements; inaccuracies in underlying operating
assumptions; expectations regarding customers’ preferences and
demands for future gaming offerings; expectations regarding our
product portfolio; the overall growth of the gaming industry, if
any; our ability to replace revenue associated with terminated
contracts; margin degradation from contract renewals; technological
obsolescence; our ability to comply with the Europay, MasterCard
and Visa global standard for cards equipped with security chip
technology; our ability to introduce new products and services,
including third-party licensed content; gaming establishment and
patron preferences; our ability to prevent, mitigate or timely
recover from cybersecurity breaches, attacks and
compromises; the level of our capital expenditures and product
development; anticipated sales performance; employee turnover;
national and international economic conditions; changes in global
market, business and regulatory conditions arising as a result of
the COVID-19 global pandemic; changes in gaming regulatory, card
association and statutory requirements; regulatory and licensing
difficulties that we may face; competitive pressures in the gaming
and financial technology sectors; the impact of changes to tax
laws; uncertainty of litigation outcomes; interest rate
fluctuations; unanticipated expenses or capital needs and those
other risks and uncertainties discussed in our most recent Annual
Report on Form 10-K filed with the U.S. Securities and Exchange
Commission on March 2, 2020 and our Form 8-K filed on April 21,
2020. Given these risks and uncertainties, there can be no
assurance that the forward-looking information contained in this
press release will in fact transpire or prove to be accurate.
Readers are cautioned not to place undue reliance on the
forward-looking statements contained herein, which are based only
on information currently available to us and speak only as of the
date hereof.
This press release should be read in conjunction
with our Annual Report on Form 10-K for the year ended December 31,
2019, and with the information included in our other press
releases, reports and other filings with the SEC. Understanding the
information contained in these filings is important in order to
fully understand our reported financial results and our business
outlook for future periods.
Contacts: Investor RelationsEveri Holdings
Inc.William PfundVP, Investor Relations(702) 676-9513 or
william.pfund@everi.com
JCIRRichard Land, James Leahy(212) 835-8500 or
evri@jcir.com
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