LAS VEGAS, May 1, 2020 /PRNewswire/ -- AGS (NYSE: AGS)
(the "Company") today announced it has successfully closed an
incremental term loan of $95 million
("Incremental Term Loan") and an amendment to its existing credit
agreement. The Incremental Term Loan, which matures in February 2024, has an interest rate of LIBOR plus
1,300 basis points, with a 100 basis point LIBOR floor. The net
proceeds of the Incremental Term Loan are expected to be used for
general corporate purposes.
In addition to the Incremental Term Loan, the Company also
amended its existing credit agreement to provide for certain
changes, including, but not limited to: a suspension of the testing
of the financial covenant through December
31, 2020 and a revised calculation of consolidated EBITDA
when determining financial covenant compliance for the first three
quarters of 2021.
AGS President and Chief Executive Officer David Lopez said, "During this global pandemic,
which has had an unprecedented impact on the casino gaming
industry, our focus has been to prioritize the well-being of our
employees and the prudent management of the Company's financial
resources for the long-term. Execution of this incremental term
loan provides us with additional liquidity and financial
flexibility to navigate these uncertain and extraordinary times,
and to help get our business back to being fully operational so
that we can be the best partners possible to our customers as our
industry begins to recover."
AGS is a global company focused on creating a diverse mix of
entertaining gaming experiences for every kind of player. Our roots
are firmly planted in the Class II Native American gaming market,
but our customer-centric culture and growth have helped us branch
out to become a leading all-inclusive commercial gaming supplier.
Powered by high-performing Class II and Class III slot products, an
expansive table products portfolio, real-money gaming platforms and
content, highly rated social casino solutions for operators and
players, and best-in-class service, we offer an unmatched value
proposition for our casino partners. Learn more
Forward-Looking and Cautionary Language
contains, and oral statements made from time to time by our
representatives may contain, forward-looking statements based on
management's current expectations and projections, which are
intended to qualify for the safe harbor of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements include statements regarding the public offering and
other statements identified by words such as "believe," "will,"
"may," "might," "likely," "expect," "anticipates," "intends,"
"plans," "seeks," "estimates," "believes," "continues," "projects"
and similar references to future periods, or by the inclusion of
forecasts or projections. All forward-looking statements are based
on current expectations and projections of future events.
These forward-looking statements reflect the current views,
models, and assumptions of AGS, and are subject to various risks
and uncertainties that cannot be predicted or qualified and could
cause actual results in AGS's performance to differ materially from
those expressed or implied by such forward looking statements.
These risks and uncertainties include, but are not limited to, the
ability of AGS to maintain strategic alliances, unit placements or
installations, grow revenue, garner new market share, secure new
licenses in new jurisdictions, successfully develop or place
proprietary product, comply with regulations, have its games
approved by relevant jurisdictions, the effects of COVID-19 on AGS'
business and results of operations, and other factors set forth
under the section entitled "Risk Factors" its annual report on Form
10-K filed with the Securities and Exchange Commission, as such
factors may be updated from time to time in our periodic filings
with the Securities and Exchange Commission. All forward-looking
statements made herein are expressly qualified in their entirety by
these cautionary statements and there can be no assurance that the
actual results, events or developments referenced herein will occur
or be realized. Readers are cautioned that all forward-looking
statements speak only to the facts and circumstances present as of
the date of this press release. AGS expressly disclaims any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
Boguslawski, Chief Marketing Officer and Executive Vice
President of Investor Relations
Steven Kopjo, Director of
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