According to an 8K filed with the SEC, Jefferies Finance served as administrative agent and collateral agent on a $125 million incremental first lien term loan for Everi Holdings and also arranged an amendment to the company’s existing senior secured credit facility.
The incremental term loan has a maturity concurrent with the May 2024 maturity date under the existing senior secured credit facility and an interest rate of LIBOR plus 1050 basis points with a 1% LIBOR floor. The net proceeds will provide additional liquidity and financial flexibility to better position Everi to withstand the challenging conditions resulting from the novel COVID-19 pandemic and strengthen its operations as industry conditions improve.
According to the 8K, Jefferies Finance served as administrative agent, collateral agent, swing line lender, letter of credit issuer, sole lead arranger and sole bookrunner on the amendment to Everi’s existing senior secured credit facility. The facility was amended to provide for changes to certain covenant provisions, including eliminating the financial maintenance covenant related to senior secured leverage for each of the remaining quarters in 2020, modifying the compliance threshold in each of the quarters thereafter and making changes that limit the company’s ability to make certain restricted payments and designate unrestricted subsidiaries.
After fees, discounts and expenses from the incremental term loan and the amendment, Everi received approximately $118 million in net proceeds. Prior to the closing of the incremental term loan, the company had a total principal balance outstanding of approximately $1.06 billion comprised of $735.5 million on the company’s existing first lien term loan due in 2024, $35 million on its revolving credit facility due in 2022 and $285.4 million of its 7.50% senior unsecured notes due in 2025.
“With our revenue and the associated workload essentially having been reduced to near zero and our limited clarity as to the various timelines when our customers may restart their operations, we have taken prudent actions to position our company to withstand this period of minimal or reduced gaming industry activity,” Michael Rumbolz, CEO of Everi, said. “We believe this incremental financing provides Everi with the flexibility to withstand this current disruption and ensure that as activity resumes, we are positioned to support our customers as they reopen for business, bring our employees back to work and regain the operating and financial momentum we consistently demonstrated prior to the COVID-19 outbreak. Our continued hope is that the steps undertaken to contain the novel COVID‐19 virus will prevail and that our economy and way of life can get back to normal as quickly as possible.”
Everi is a provider of gaming products, financial technology and loyalty solutions in the gaming industry.
