AGS adds $30 million incremental term loan at 99.75 OID

By Sara Rosenberg

New York, Oct. 3 – AGS (AP Gaming I LLC) added a fungible $30 million incremental senior secured first-lien term loan due Feb. 15, 2024 to its transaction, bringing the total term loan (B2/B+) size to roughly $540 million, according to a market source.

Pricing on the term loan debt remained at Libor plus 350 basis points with one 25 bps step-down upon an upgrade to B1 corporate family rating and a 1% Libor floor.

The incremental loan is being issued at an original issue discount of 99.75 and the repricing of the existing roughly $510 million term loan due Feb. 15, 2024 is still being issued at par.

The term loan debt has 101 soft call protection for six months and a maximum net first-lien leverage ratio covenant.

Jefferies LLC is the lead arranger on the deal.

Proceeds from the incremental loan will be used to fund cash on the balance sheet, and the repricing will take the existing term loan down from Libor plus 425 bps.

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

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