Global Cash Access deleveraging with redemption of 8¾% senior notes

By Lisa Kerner

Charlotte, N.C., April 9 - Global Cash Access, Inc. said its recently announced redemption of $25 million of 8¾% senior subordinated notes due 2012 is a deleveraging effort.

A company spokesperson referred to comments made during Global Cash's fourth-quarter earnings call in February. At that time, Global Cash said it could use capital to repurchase debt or shares.

Global Cash ended the fourth quarter with "just shy of $85 million of cash on hand," said president and chief executive officer Scott Betts, according to a transcript from the call.

As previously reported, Global Cash said it would use cash on hand to pay par for the 8¾% senior subordinated notes on the May 3 redemption date.

Following the redemption, $127.8 million of the notes will remain outstanding.

The company ended the fourth quarter in compliance with all of its debt covenants and expected revenue to be flat or slightly down in 2010, the transcript said.

Las Vegas-based Global Cash provides cash-access products and related services to the gaming industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.