AGS launches $512.5 million term loan at Libor plus 425 bps

By Sara Rosenberg

New York, Jan. 31 – AGS (AP Gaming I LLC) held a lender call on Wednesday to launch a $512.5 million term loan that is talked at Libor plus 425 basis points with a 1% Libor floor and a par issue price, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Jefferies LLC is the lead bank on the deal.

Commitments are due at noon ET on Tuesday, the source added.

Proceeds will be used to reprice an existing term loan down from Libor plus 550 bps with a 1% Libor floor.

On Tuesday, the company’s corporate family rating was upgraded by Moody’s Investors Service to B2 from B3 due to the successful initial public offering of common stock by parent company PlayAGS Inc. and the use of net proceeds to repay the senior PIK notes. The term loan rating was affirmed at B2.

AGS is a Las Vegas-based manufacturer and operator of gaming machines.

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