PLAYSTUDIOS Announces New $75 Million Revolving Credit Facility
June 25 2021 - 8:30AM
Business Wire
PLAYSTUDIOS, Inc. (Nasdaq: MYPS) (“PLAYSTUDIOS” or the
“Company”), an award-winning developer of free-to-play casual
mobile and social games that offer real-world rewards to loyal
players, announced today that it has entered into a new $75
million, five-year secured revolving credit facility (“New Credit
Facility”) to support its future growth initiatives. The New Credit
Facility also provides the Company with an option to increase the
credit facility for up to an additional $75 million.
“This new credit facility adds liquidity to our already strong
cash position, lowers our costs of capital, and represents a
significant vote of confidence from our financial partners,” said
Andrew Pascal, Founder, Chairman, and Chief Executive Officer of
PLAYSTUDIOS. “In addition, the facility provides the financial
flexibility needed to execute on our long-term plans to
successfully grow the business.”
The New Credit Facility replaces the existing revolving credit
facility and will mature on June 24, 2026. The interest rates are
determined on the basis of either a Eurodollar rate or an Alternate
Base Rate plus an applicable margin. The applicable margins are
initially 2.50%, in the case of Eurodollar loans, and 1.50%, in the
case of Alternate Base Rate loan and are subject to floors of 0.00%
and 1.00%, respectively. The applicable margin is subject to
adjustment based upon the Company's Total Net Leverage Ratio (as
defined in the New Credit Facility agreement). Borrowings under the
New Credit Facility may be borrowed, repaid, and re-borrowed by the
Company and are available for working capital, general corporate
purposes, and permitted acquisitions.
The New Credit Facility agreement contains customary financial
covenants as well as affirmative and negative covenants customary
for transactions of this type, including limitations with respect
to indebtedness, liens, investments, dividends, disposition of
assets, change in business and transactions with affiliates. Loans
under the New Credit Facility are secured by a perfected first
priority security interest in substantially all of our tangible and
intangible assets.
JPMorgan Chase Bank, N.A., Silicon Valley Bank and Wells Fargo
Securities, LLC, served as joint bookrunners and joint lead
arrangers. JPMorgan Chase Bank, N.A., serves as the administrative
agent.
About PLAYSTUDIOS, Inc.
PLAYSTUDIOS, Inc. (Nasdaq: MYPS) is the developer and operator
of award-winning free-to-play casual games for mobile and social
platforms. The company’s collection of original and published
titles is powered by its groundbreaking playAWARDS loyalty
marketing platform, which enables players to earn real-world
rewards from a portfolio of global entertainment, retail,
technology, travel, leisure, and gaming brands across 17 countries
and four continents. Founded by a team of veteran gaming,
hospitality, and technology entrepreneurs, PLAYSTUDIOS brings
together beautifully designed mobile gaming content with an
innovative loyalty platform in order to provide its players with an
unequaled entertainment experience and its partners with actionable
business insights. To learn more about PLAYSTUDIOS, visit
playstudios.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. The company’s actual
results may differ from their expectations, estimates and
projections and consequently, you should not rely on these forward
looking statements as predictions of future events. Words such as
“expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements involve significant
risks and uncertainties that could cause the actual results to
differ materially from the expected results. Most of these factors
are outside the company’s control and are difficult to predict.
Factors that may cause such differences include, but are not
limited to: (1) the ability to recognize the anticipated benefits
of the business combination, which may be affected by, among other
things, competition, the ability of the company to grow and manage
growth profitably, and retain its key employees; (2) costs related
to the business combination; (3) the inability to maintain listing
of the company’s shares on the Nasdaq; (4) the company’s ability to
execute its business plan and meet its projections; (5) the outcome
of any legal proceedings that may be instituted against the
company; (6) the impact of COVID-19 on the company’s business; (7)
the company’s transition to becoming a public company including the
associated expenses and the impact of public financial and other
disclosures on its negotiations and arrangements with key
counterparties; (8) changes in applicable laws or regulations; (9)
general economic, business, and/or competitive factors; and (10)
other risks and uncertainties included from time to time in the
company’s other filings with the U.S. Securities and Exchange
Commission (the “SEC”). Additional information will be made
available in other filings that the company makes from time to time
with the SEC. In addition, any forward-looking statements contained
in this press release are based on assumptions that the company
believes to be reasonable as of this date. The company undertakes
no obligation to update any forward-looking statements to reflect
events or circumstances after the date of this press release or to
reflect new information or the occurrence of unanticipated events,
except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210625005089/en/
Investor Relations Jacques Cornet IR@playstudios.com
Media Relations Amy Rossetti media@playstudios.com
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