PlayAGS launches $575 million term loan at SOFR plus 400 bps

By Sara Rosenberg

New York, Jan. 28 – PlayAGS Inc. (AP Gaming I LLC) launched on Friday its $575 million seven-year covenant-lite first-lien term loan with price talk of SOFR+CSA plus 400 basis points with a 0.75% floor and an original issue discount of 99, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

The company’s $615 million of credit facilities (B) also include a $40 million five-year revolver.

Jefferies LLC, Barclays, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc. and Apollo are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Feb. 8, the source added.

Proceeds will be used with about $53 million of cash from the balance sheet to repay $614.8 million of term loans due 2024 and pay around $13 million of prepayment premiums, fees and expenses.

The revolver is expected to be undrawn at closing.

Pro forma for the transaction, total net leverage will be 4.4x based on fiscal year 2021 adjusted EBITDA of $122.7 million.

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

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