Summary by Moomoo AI
On February 5, 2024, PlayAGS, Inc. announced the successful completion of a repricing of its term loan credit facility. The amendment, known as the Seventh Amendment, was entered into by AP Gaming I, LLC, a wholly owned indirect subsidiary of PlayAGS, and AP Gaming Holdings, LLC, another subsidiary of the company. The amendment resulted in the removal of the credit spread adjustment for term loan borrowings and a reduction in the Applicable Margin on the company's existing term loan to 3.75% for Term SOFR borrowings and 2.75% for ABR borrowings. Concurrently, PlayAGS elected to repay $15 million of its total debt outstanding. This strategic financial move is expected to generate annualized cash interest expense savings of over $3 million. The company's CFO, Kimo Akiona, emphasized the focus on reducing net leverage through consistent Adjusted EBITDA growth and improving free cash flow conversion, aiming to expedite the company's deleveraging objectives.
