Everi Holdings, a provider of casino gaming products and payments solutions, announced today the repricing of its $820m Senior Secured Term Loan.
Under the amended term loan, the interest rate has been reduced by 100 basis points to LIBOR +3.5 percent from LIBOR +4.50 percent and includes six months of 101 soft call protection.
The LIBOR floor remains unchanged at one percent.
“The reduced interest rate on our Term Loan is a direct result of the tremendous progress we have made throughout 2017 and our ability to successfully execute on our business plan,” said Randy Taylor, executive vice-president and CFO of Everi.
“This repricing provides another important update to our capital structure. 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.”
Based on the interest rates currently in effect and a Term Loan balance outstanding of $818m, the repricing is expected to generate cash interest savings of approximately $8.2m 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.
The maturity date for the Term Loan remains 9 May, 2024, and no changes were made to the financial covenants or other debt repayment terms.