AP Gaming arranges $265 million term loans, $15 million revolver

By Toni Weeks

San Luis Obispo, Calif., June 3 – AP Gaming Holdco, Inc. and wholly owned indirect subsidiary AP Gaming I, LLC entered into a term loan incremental assumption agreement on May 29 with Citicorp NA, Inc. as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement amended the companies’ first-lien credit agreement dated Dec. 20, 2013 to allow for $265 million of incremental term loans.

Proceeds of the loans were used to partially finance the acquisition of Cadillac Jack, Inc. by AGS, LLC, an indirect wholly owned subsidiary of AP Gaming Holdco.

The term loans have the same terms as the borrower’s existing term loans, which were initially drawn on Dec. 20, 2013.

In addition, on June 1 the companies entered into a revolver incremental assumption agreement, which amended the Dec. 20, 2013 credit agreement to provide incremental revolving commitments in a principal amount of $15 million.

The incremental revolving commitments are available to the borrowers from time to time, and proceeds may be used for general corporate purposes including, without limitation, for permitted acquisitions.

The incremental revolving facility commitments have the same terms as the borrower’s existing revolving credit facility commitments under the credit agreement.

The credit agreement requires that the borrower maintain a maximum net first-lien leverage ratio of no greater than 5.5 to 1 at the end of each fiscal quarter.

The borrowers are subsidiaries of Las Vegas,-based AGS, a designer and manufacturer of gaming products for the casino floor.

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