Galaxy Gaming closed a new $10.5 million term loan with Breakaway Capital Management which matures in August 2021.

The new term loan refinances the existing long-term debt outstanding, which originated due to the 2011 asset purchase of Prime Table Games. The term loan will include a six-month interest only period, then amortize at 10% per year until maturity.

The refinancing transaction will reduce the company’s debt service payments and yield approximately $2.9 million of additional cash flow in the first 12 months alone. The company will utilize the additional cash flow for working capital purposes including, but not limited to, investment in research and development initiatives and expansion of its worldwide salesforce. The company was advised by Union Gaming Securities and Cascadia Capital.

Gary A. Vecchiarelli, the Galaxy Gaming’s chief financial officer, said, “I am pleased to announce this refinancing which will enhance our cash flow and allow us to reinvest in our business. This recapitalization of the balance sheet will open up many opportunities for us to bring innovations to the market and accelerate our expansion strategy. Since the 2011 acquisition, we have aggressively paid down over 50% of the original balance, which is a testament to how profitable our business model is.”

Mike Connolly, founder and general partner of Breakaway Capital said, “Galaxy Gaming’s recurring business model and unique position in the marketplace are what attracted us to the opportunity. We are happy to partner with Galaxy and help take their operations and strategy to the next level.”