PlayAGS units closes $40 million senior secured first-lien revolver

By Marisa Wong

Los Angeles, Feb. 15 – PlayAGS, Inc. wholly owned indirect subsidiaries AP Gaming I, LLC and AP Gaming Holdings, LLC entered into an incremental assumption and amendment agreement on Feb. 15 with Jefferies Finance LLC as administrative agent for a new $40 million senior secured first-lien revolving facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolver includes a $7.5 million letter-of-credit subfacility and a $5 million swingline subfacility.

Commitments under the new revolver will terminate on Feb. 15, 2027.

The incremental agreement amends and restates AP Gaming’s first-lien credit agreement dated June 6, 2017.

As previously announced, the agreement also provides a new $575 million term loan facility.

The new term loan will mature on Feb. 15, 2029. Beginning with the quarter ending June 30, 2022, the term loan will amortize in quarterly installments equal to 0.25% of the original aggregate principal amount, with the balance due at maturity.

Borrowings will bear interest at adjusted SOFR plus an applicable margin of 400 basis points, subject to a 0% SOFR floor for revolver borrowings and 0.75% floor for term loans.

In addition, the borrower will be required to pay a 50-bps commitment fee for unutilized commitments under the revolver.

The borrower may voluntarily repay outstanding loans at any time, without prepayment premium or penalty, except in connection with a repricing event, subject to customary breakage costs with respect to adjusted term SOFR loans.

Any refinancing through the issuance of certain debt or any repricing amendment that constitutes a “repricing event” applicable to the term loan resulting in a lower yield occurring at any time on or prior to Aug. 15, 2022 will be accompanied by a 1% prepayment premium or fee, as applicable.

The amended credit agreement requires the borrower to comply on a quarterly basis, beginning on June 30, with a maximum net first-lien senior secured leverage ratio of 6.70 to 1.00 if the aggregate amount of funded loans and issued letters of credit (excluding up to $5 million of undrawn letters of credit under the revolver and letters of credit that are cash collateralized) under the revolver on that date exceeds 35% of the then-outstanding commitments under the new revolver.

Revolving loans drawn after the closing date, swingline loans and letters of credit will be used for working capital and general corporate purposes.

Proceeds from the new term loan, together with cash on hand, were used at closing to repay all amounts outstanding under existing term loan facilities.

Jefferies Finance, Barclays Bank plc, Credit Suisse Loan Funding LLC and Macquarie Capital (USA) Inc. are joint lead arrangers and joint bookrunners, syndication agents and documentation agents. Apollo Global Securities, LLC is co-manager.

PlayAGS is a Las Vegas-based designer and supplier of diverse gaming products and services to the gaming industry.

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