PlayAGS readies launch of $615 million credit facilities for Friday

By Sara Rosenberg

New York, Jan. 27 – PlayAGS Inc. (AP Gaming I LLC) is set to hold a bank meeting at 11 a.m. ET on Friday to launch $615 million of credit facilities, according to a market source.

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

The facilities consist of a $40 million five-year revolver and a $575 million seven-year covenant-lite first-lien term loan, the source said.

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

Mandatory prepayments are from 50% of excess cash flow, subject to leverage-based step-downs to 25% and 0%, 100% of certain asset sale proceeds, subject to leverage-based step-downs to 50% and 0% and reinvestment rights, and 100% of debt issuance proceeds other than permitted debt.

Commitments are due at noon ET on Feb. 8.

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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